How Much Do Residential Consumers Respond To The Price Of Natural Gas?

February 07, 2018

ARE Professor Max Auffhammer and ARE PhD candidate Ed Rubin coauthored this Energy Institute at Haas blog post on deciphering natural gas consumption in the event of pricing changes. Auffhammer and Rubin have recently written a paper to derive a true estimate of the price elasticity of natural gas demand that is not polluted by other changes in factors facing the household. Using CA residential natural gas bills sourced from PG&E and Southern California Gas Company, they have found that higher prices result in lowered consumption for poor households in the winter.