Environment Quick News   
A Monthly Report on EPRI's Environmental Research Programs December 2010/January 2011
Program 103: Greenhouse Gas Reduction Options

Energy Price Elasticity Update
Trends in Regional US Electricity and Natural Gas Price Elasticity (EPRI Product 1022196). This Technical Update describes an analysis of consumer responsiveness to energy price changes for electricity and natural gas using data from 1993 through 2007. Price elasticity is a measure of how customers respond to changes in energy prices. Climate change policies that increase the price of electricity will result in different consequences for the power industry, state economies, and power users, depending on how consumers respond to those prices. This new analysis of consumer responsiveness to energy price changes updates prior studies by including the recent period of rising prices since 2000. The analysis considers total and residential electricity demand, and total natural gas consumption, at both national and regional levels. For more information, contact Victor Niemeyer, 650.855.2262, niemeyer@epri.com.