This report presents a fuel choice and aggregate-demand model of energy use in the commercial sector of the United States. The model structure is dynamic with short-run fuel-price responses estimated to be close to those of the residential sector. Of the three fuels analyzed, electricity consumption exhibits a greater response to its own price than either natural gas or fuel oil. In addition, electricity price increases have the largest effect on end-use energy conservation in the commercial sector. An improved commercial energy-use data base is developed which removes the residential portion of electricity and natural gas use that traditional energy-consumption …
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This report presents a fuel choice and aggregate-demand model of energy use in the commercial sector of the United States. The model structure is dynamic with short-run fuel-price responses estimated to be close to those of the residential sector. Of the three fuels analyzed, electricity consumption exhibits a greater response to its own price than either natural gas or fuel oil. In addition, electricity price increases have the largest effect on end-use energy conservation in the commercial sector. An improved commercial energy-use data base is developed which removes the residential portion of electricity and natural gas use that traditional energy-consumption data sources assign to the commercial sector. In addition, household and commercial petroleum use is differentiated on a state-by-state basis.
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