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The Household Appliance Stock, Income, and Electricity Demand Elasticity

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  • Adrienne Ohler, David G. Loomis, and Yewande Marquis

Abstract

This paper estimates household electricity demand using data from the Energy Information Administrations (EIA) 2015 Residential Energy Consumption Survey (RECS). Previous research has focused on estimating price elasticities, and we contribute to this literature by examining how price elasticity is impacted by household income and the appliance stock. Results show that as income increases, households rely less on electricity for space and water heating, but the number of electronic appliances increases with income. The changing stock suggests that the mechanism through which energy reduction occurs differs across income levels. The results can aid policymakers concerned about electricity demand, rising electricity rates, and the impact on low-income households. The results can also inform the design of demand response and demand side management programs.

Suggested Citation

  • Adrienne Ohler, David G. Loomis, and Yewande Marquis, 2022. "The Household Appliance Stock, Income, and Electricity Demand Elasticity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    • Handle: RePEc:aen:journl:ej43-1-loomis
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    Cited by:

    1. Yuanping Wang & Weiguang Cai & Lingchun Hou & Zhaoyin Zhou & Jing Bian, 2022. "Examining the Provincial-Level Difference and Impact Factors of Urban Household Electricity Consumption in China—Based on the Extended STIRPAT Model," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    2. Covington, Hannah & Woo-Shem, Brian & Wang, Chenli & Roth, Thomas & Nguyen, Cuong & Liu, Yuhong & Fang, Yi & Lee, Hohyun, 2024. "Method for evaluating fairness of electricity tariffs with regard to income level of residential buildings," Applied Energy, Elsevier, vol. 353(PB).

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    JEL classification:

    • F0 - International Economics - - General

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