Estimating Marginal Residential Energy Prices in the Analysis of Proposed Appliance Energy Efficiency Standards

TitleEstimating Marginal Residential Energy Prices in the Analysis of Proposed Appliance Energy Efficiency Standards
Publication TypeReport
LBNL Report NumberLBNL-44230
Year of Publication2000
AuthorsChaitkin, Stuart, James E. McMahon, Camilla Dunham Whitehead, Robert D. Van Buskirk, and James D. Lutz
Document NumberLBNL-44230
Date PublishedMarch 1
PublisherLawrence Berkeley National Laboratory
CityBerkeley
Abstract

Use of marginal energy prices, instead of average energy prices, represents a theoretically valuable and challenging refinement to the usual life-cycle cost analysis conducted for proposed appliance energy efficiency standards. LBNL developed a method to estimate marginal residential energy prices using a regression analysis based on a nationally representative sample of actual consumer energy bills. Based on the 1997 Residential Energy Consumption Survey (RECS), national mean marginal electricity prices were estimated to be 2.5% less than average electricity prices in the summer and 10.0% less than average prices in the non-summer months. For natural gas, marginal prices were 4.4% less than average prices in the winter and 15.3% less than average prices in the non-winter months.

Notes

Conference Paper, Proceedings of the ACEEE Summer Study on Energy Efficiency in Buildings, 9, 2, 2000