Estimating the effects of the onset of the energy crisis on residential energy demand

Abstract

The onset of the energy crisis as indicated by the start of the Arab oil embargo gave both the private and public sector incentive to reduce the domestic demand for natural gas and oil. Through several mechanisms the residential consumer was encouraged to reduce the demand for energy in the home. We examine a community of almost-identical owner-occupied townhouses to assess the degree to which these mechanisms were effective. The homogeneity of the community removes many sources of variation which would plague an analysis of a random sample of American homes. The demand for natural gas, a fuel which is used only for space heating in our townhouses, was reduced significantly but the demand for electricity was unaffected by the onset of the crisis.