Interfuel substitution model for institutions of higher education: implications for conservation Page: 4 of 23
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4.
AN INTERFUEL SUBSTITUTION MODEL FOR INSTITUTIONS OF
HIGHER EDUCATION: IMPLICATIONS FOR CONSERVATION
ABSTRACT
This paper describes a model of interfuel substitution for colleges and.
universities in the United States and its implications for conserving fossil
fuel resources. There is a significant and growing interest among institutions
of higher education in utilizing more efficiently their purchased as well as
generated energy sources.
An analysis of energy consumption patterns of colleges and universities
shows a significant difference in how energy sources are being utilized. Smaller
colleges and universities convert purchased fuels directly into end use services
such as space heating, water heating, and lighting. The purchased fuels may
include electricity, fossil fuels such as distillate and/or residual oils,
natural gas and coal as well as steam and chilled water from nearby electric
generating plants.
A more varied fuel use situation exists for larger institutions where
not only the above fuel consumption mixture exists, but a central generating
plant operated by the university may exist which uses purchased fossil fuels in
a primary energy use sense to generate electricity, steam, and chilled water for
their own end use requirements.
In this study a multinomial logit formulation is applied to a. large sample
of higher education institutions to estimate the levels of interfuel substitution.
The results of this study indicate that relative changes in fuel prices
across a broad cross-section of colleges and universities have significant
effects on primary and end-use consumption of fuels. Increasing prices of
distillate and residual fuels have a greater energy conservation potential than
do equal pricet:increases for coal and natural gas. Electricity is found not to have
significant substitution possibilities with the fossil fuels. The results have
important overtones for public policy. The structure of the market system may
be well suited to handle dislocations in energy price and supplies for colleges
and universities; and future decisions by public policy makers may reflect this
situation.
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Cohn, Steve M.; O'Neal, Dennis L. & Perry, Robert L. Interfuel substitution model for institutions of higher education: implications for conservation, article, January 1, 1980; Tennessee. (https://digital.library.unt.edu/ark:/67531/metadc1064738/m1/4/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.