PT  - JOURNAL ARTICLE
AU  - Denton, Frank T.
AU  - Mountain, Dean C.
AU  - Spencer, Byron G.
TI  - Energy Demand with Declining Rate Schedules: An Econometric Model for the U.S. Commercial Sector
AID  - 10.2307/3147107
DP  - 2003 Feb 01
TA  - Land Economics
PG  - 86--105
VI  - 79
IP  - 1
4099  - http://le.uwpress.org/content/79/1/86.short
4100  - http://le.uwpress.org/content/79/1/86.full
SO  - Land Econ2003 Feb 01; 79
AB  - We specify and estimate a model of the demand for electricity and natural gas in commercial buildings using data from the Commercial Building Energy Consumption Survey. Although not observed, declining rate schedules are approximated by a downward sloping function fitted to billing data for individual survey units. Marginal prices (rates), temperature variables and a large number of building characteristics are incorporated into the model as explanatory variables. Demand and rate schedule equations constitute a simultaneous system, with prices and quantities jointly determined. The effects on price elasticities of using (endogenous) marginal rather than (exogenous) average prices are estimated to be quite large. (JEL Q41)