Interactions of Prices and Household Characteristics and Residential Energy Conservation

Abstract

The analysis identifies the determinants of residential energy consumption by 95 households between 1973–74 and 1977–78. The data are from households surveyed in 1974 and 1976. Changes in consumption from year to year are treated as dependent on the initial level of consumption, changes in energy prices, current family income, family life cycle status and family employment structure, type and size of dwelling, reported attempts to conserve and exposure to energy conservation information. Yearly variations in weather are incorporated by expressing consumption in British Thermal Units (Btu) per heating degree day.

Mean family consumption declined by 21.6 percent between 1973–74 and 1977–78. The majority conserved by more than two percent in three of four seasons and 59 percent had conserved at least 20 percent after four seasons. Energy prices, family income, family size, employment structure and dwelling size measures were all statistically significant predictors of annual consumption. The primary determinants of conservation were price change and prior consumption level. Family characteristics determined consumption, but had little relation to conservation. People who were at work all day used less energy and conserved more, reinforcing the importance of thermostat reduction measures for conservation.

Additional information

Notes on contributors

Peter M. Gladhart

Peter M. Gladhart is Associate Professor, Department of Family and Child Ecology, Michigan State University, East Lansing, Michigan. This paper is Michigan Agricultural Experiment Station Journal Article number 11314.