Transaction Costs and their Impact on Energy Demand Behaviour
The very recent trends in energy demand are incompatible with empirically fitted price elasticities. Different reasons are conceivable to explain this behaviour — technological progress, public policy etc. This paper argues that transaction costs associated with investment decisions of households — for energy conservation and/or fuel substitution — may have an significant impact. This in turn can explain — at least partially and for some sectors of demand (residential) — the recent energy pattern. The paper provides a theoretical discussion of these aspects and complementary, some empirical examples.
KeywordsTransaction Cost Energy Demand Energy Price Fuel Price Indoor Temperature
Unable to display preview. Download preview PDF.
- Bohi Douglas R. (1981), Analyzing Demand Behavior: A Study of Energy Elasticities, published for Resources for the Future by John Hopkins Press, Baltimore and London.Google Scholar
- Hirst Eric (1987), Changes in Indoor Temperature After Retrofit Based on Electricity Billing and Weather Data, Energy Systems and Policy, 10, 1–20.Google Scholar
- Pindyck Robert S. (1979), The Structure of World Energy Demand, MIT Press, Cambridge, Mass..Google Scholar
- Schipper Lee and Andrea N. Ketoff (1985), Residential Energy Use in the OECD, The Energy Journal, 6, No4, 65–85Google Scholar
- Williamson Oliver E., Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New York, (1975).Google Scholar
- Williamson Oliver E. (1981), The Modern Corporation: Origins, Evolution, Attributes, Journal of Economic Literature, 19, 1537–1568.Google Scholar
- Willimason Oliver E., The Economics of Governance: Framework and Implications, Zeitschrift für gesamte Staatswissenschafte, 140, 195–223, (1984).Google Scholar
- Wirl Franz (1988), Thermal Comfort, Energy Conservation and Fuel Substitution: An Economic-Engineering Approach, Energy Systems and Policy, 11, 311–328.Google Scholar