Electricity Consumption and Durable Housing: Understanding Cohort Effects

12 Pages Posted: 31 Jan 2011

See all articles by Dora L. Costa

Dora L. Costa

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Date Written: January 2011

Abstract

We find that households living in California homes built in the 1960s and 1970s had high electricity consumption in 2000 relative to houses of more recent vintages because the price of electricity at the time of home construction was low. Homes built in the early 1990s had lower electricity consumption than homes of earlier vintages because the price of electricity was higher. The elasticity of the price of electricity at the time of construction was -0.22. As homes built between 1960 and 1989 become a smaller share of the housing stock, average household electricity purchases will fall.

Suggested Citation

Costa, Dora L. and Kahn, Matthew E., Electricity Consumption and Durable Housing: Understanding Cohort Effects (January 2011). NBER Working Paper No. w16732. Available at SSRN: https://ssrn.com/abstract=1749891

Dora L. Costa (Contact Author)

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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