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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 19 records
All sourcesNASA NTRSDOE OSTI
DOE OSTI2015

Estimating Price Elasticity using Market-Level Appliance Data

This report provides and update to and expansion upon our 2008 LBNL report “An Analysis of the Price Elasticity of Demand for Appliances,” in which we estimated an average relative price elasticity of -0.34 for major household appliances (Dale and Fujita 2008). Consumer responsiveness to price change is a key component of energy efficiency policy analysis; these policies influence consumer purchases through price both explicitly and implicitly. However, few studies address appliance demand elasticity in the U.S. market and public data sources are generally insufficient for rigorous estimation. Therefore, analysts have relied on a small set of outdated papers focused on limited appliance types, assuming long-term elasticities estimated for other durables (e.g., vehicles) decades ago are applicable to current and future appliance purchasing behavior. We aim to partially rectify this problem in the context of appliance efficiency standards by revisiting our previous analysis, utilizing data released over the last ten years and identifying additional estimates of durable goods price elasticities in the literature. Reviewing the literature, we find the following ranges of market-level price elasticities: -0.14 to -0.42 for appliances; -0.30 to -1.28 for automobiles; -0.47 to -2.55 for other durable goods. Brand price elasticities are substantially higher for these product groups, with most estimates -2.0 or more elastic. Using market-level shipments, sales value, and efficiency level data for 1989-2009, we run various iterations of a log-log regression model, arriving at a recommended range of short run appliance price elasticity between -0.4 and -0.5, with a default value of -0.45.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2017

Meta-Analysis of the Oil Price Elasticity of the GDP for Policy Analysis: Documentation

Given the important role of oil in economic activities, policy makers are interested in estimates of the potential damage to the economy from oil price shocks, particularly during periods of rapid and large increases that accompany severe shocks. Such estimates are needed to quantify the economic costs of oil price shocks, and to evaluate the potential benefits of alternative policy responses. Although research on the economic impacts of oil price shocks is extensive and has generally found that large increases in oil prices exert negative economic impacts, the range of estimates, summarized by the oil price elasticity of the GDP or other aggregate measure of economic activity, is very wide. There are also conditions under which the relationship between the oil price and the economy could be positive. The range of estimates of the oil price elasticity of the GDP for the United States is typified by averages from the studies of Hamilton (2005, 2012) and Kilian and Vigfusson (2014), in which the implied elasticities were -0.014 to - 0.069 and +0.004 to -0.052, respectively. We employ a meta-regression approach to systematically summarize available estimates of the oil price elasticity of the GDP for oil importing economies, and examine the role of key factors. The resulting regression model was used to estimate the oil price elasticity of the GDP for the United States. Based on this we estimate the mean elasticity for the United States at -0.0238, with a 68% confidence interval of -0.0075 to -0.0402, four quarters after a shock.

02 PETROLEUM↗
DOE OSTI2026

How does drought affect residential water demand and price elasticity?

Urban water scarcity is an important social and economic concern, particularly as the intensity, duration, and frequency of droughts is increasing in many regions. We consider whether drought induces changes to water demand and the price elasticity of demand for water that may last beyond a drought’s official end date. If drought shocks prompt long-term changes in water demand behavior, and these changes occur at broad geographic scale, they could have important implications for modeling adaptive responses to water scarcity. We assemble a novel dataset on residential water demand and pricing in the western United States to test empirically for effects of drought on water demand and price elasticity. We perform our analysis with aggregate quantity, price, and drought data, accounting for endogenous prices under increasing-block water tariffs and using both average and marginal water fees in estimating water demand functions. Results are consistent with the hypothesis that households may become less price-sensitive after exposure to drought. However, we find no systematic evidence of long-run, drought-related reductions in water demand, itself.

demand hardening↗
DOE OSTI2018

Distribution Optimal Power Flow With Real-Time Price Elasticity

This letter investigates a new class of optimal power flow problem for distribution systems, where elastic loads respond to real-time nodal prices by adjusting their demands. A fixed point iteration algorithm is suggested to identify an equilibrium. A concise criterion is devised to judge convergence.

demand response↗
DOE OSTI2017

Estimating the price (in)elasticity of off-grid electricity demand

Community-scale power infrastructure may be the only electrification option for tens of millions households that remain out of reach from centralized power grids. The responsiveness of household electricity demand to price is a crucial design input for off-grid systems. While the price elasticity of electricity demand of grid-connected consumers has been abundantly studied, few studies focus on off-grid communities where substantial econometric challenges arise, including the absence of metered consumption data and electricity prices that are simultaneously determined by cost and demand considerations. This study attempts to address these challenges for the case of off-grid micro hydropower consumers. It makes two core contributions: First, we propose the surface area of the contributing hydrologic catchment as a new instrumental variable to estimate elasticity using a cross sectional dataset of existing micro hydropower infrastructure. Second, we provide a first price-elasticity estimate (-0.15) for off-grid electricity demand in Nepal. We surmise that the small (in absolute value) elasticity value found in this study arises from the low levels of consumption observed off-the-grid. We use a Monte Carlo analysis to show that failing to account for this disparity can lead to substantial financial losses caused by suboptimal power infrastructure design.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
NASA NTRS2003

An Airline-Based Multilevel Analysis of Airfare Elasticity for Passenger Demand

Price elasticity of passenger demand for a specific airline is estimated. The main drivers affecting passenger demand for air transportation are identified. First, an Ordinary Least Squares regression analysis is performed. Then, a multilevel analysis-based methodology to investigate the pattern of variation of price elasticity of demand among the various routes of the airline under study is proposed. The experienced daily passenger demands on each fare-class are grouped for each considered route. 9 routes were studied for the months of February and May in years from 1999 to 2002, and two fare-classes were defined (business and economy). The analysis has revealed that the airfare elasticity of passenger demand significantly varies among the different routes of the airline.

Castelli, Lorenzo↗
DOE OSTI2014

Robust Unit Commitment Considering Uncertain Demand Response

Although price responsive demand response has been widely accepted as playing an important role in the reliable and economic operation of power system, the real response from demand side can be highly uncertain due to limited understanding of consumers' response to pricing signals. To model the behavior of consumers, the price elasticity of demand has been explored and utilized in both research and real practice. However, the price elasticity of demand is not precisely known and may vary greatly with operating conditions and types of customers. To accommodate the uncertainty of demand response, alternative unit commitment methods robust to the uncertainty of the demand response require investigation. In this paper, a robust unit commitment model to minimize the generalized social cost is proposed for the optimal unit commitment decision taking into account uncertainty of the price elasticity of demand. By optimizing the worst case under proper robust level, the unit commitment solution of the proposed model is robust against all possible realizations of the modeled uncertain demand response. Numerical simulations on the IEEE Reliability Test System show the e ectiveness of the method. Finally, compared to unit commitment with deterministic price elasticity of demand, the proposed robust model can reduce the average Locational Marginal Prices (LMPs) as well as the price volatility.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
NASA NTRS1975

The political economy of conservation

A political economic purview of energy conservation in the United States was delineated. The concepts of substitution and elasticity are distinguished, and further distinctions are made between short run price elasticity, cross price elasticity, and available fund elasticity. An assessment of the role which cost factors can play in conservation is given. The structure of the petroleum industry and foreign petroleum resources is discussed. Also discussed is the role of government, industry and the consumer with the economic sphere.

Source record↗
DOE OSTI2022

Price response of waste resources under demand shocks: four case studies

To quantify potential price changes of waste feedstocks that may be caused by increased demand, this study explored four case studies: 1) recyclable materials at local waste collection and recycling facilities in seven US states, 2) recyclable materials on internationally traded markets, 3) a wood-powered plant in Reading, PA, and 4) an MSW-powered plant in Tulsa, OK. The four case studies provided a total of ninety-one waste material price observations yielding twenty-seven price-supply relationships expressed as price elasticity of supply (PES) and unit price change with change in demand. For the two case studies related to recyclable materials with a global market shock, price changes vary widely from $0.08-$7.84 per ton with each percent change in demand. For the two case studies related to local market shocks in biomass used for energy, observed price changes range from $0.08-$0.23 per ton per percent change in demand. Based on these results, a base range of $0.10-$0.20 per ton per percent change in demand is recommended for local market shocks. I.e., for a facility that collects organic wastes on the order of 200,000-400,000 tons per year at price near zero, a doubling of demand could increase procurement prices by about $10.00-$20.00 per ton. Actual price changes with respect to change in demand may be non-linear. Shocks with broader geographic extent may increase price response due to a reduced opportunity for surrounding markets to mitigate localized market changes.

09 BIOMASS FUELS↗
DOE OSTI2014

Consumer Choice of E85 Denatured Ethanol Fuel Blend: Price Sensitivity and Cost of Limited Fuel Availability

The promotion of greater use of E85, a fuel blend of 85% denatured ethanol, by flex-fuel vehicle owners is an important means of complying with the Renewable Fuel Standard 2. A good understanding of factors affecting E85 demand is necessary for effective policies that promote E85 and for developing models that forecast E85 sales in the United States. In this paper, the sensitivity of aggregate E85 demand to E85 and gasoline prices is estimated, as is the relative availability of E85 versus gasoline. The econometric analysis uses recent data from Minnesota, North Dakota, and Iowa. The more recent data allow a better estimate of nonfleet demand and indicate that the market price elasticity of E85 choice is substantially higher than previously estimated.

09 BIOMASS FUELS↗
DOE OSTI2021

EFFORT (EFFectiveness Of Rate sTructure for enabling demand response)

This tool helps utilities evaluate potential time of use price-plans and find effective hours for price plan on peak periods and the potential price-elastic demand response. An optimization model can be used to find tiered prices for the time of use tariffs and analyze the impact on load profiles, energy consumption, utility, and customer savings. The tool is equipped with an optimization model to determine the energy consumption of electric appliances that can leverage survey data containing information on the number of appliances owned by customers. Lastly, a statistical model can be used to predict system-level load based on exogenous parameters such as weather, time of day, month, type of day, and year. The tool is scripted in Python and uses the Pyomo python optimization language.

Duwadi, Kapil↗
DOE OSTI2021

Heterogeneity in own-price residential customer demand elasticities for electricity under time-of-use rates: Evidence from a randomized-control trial in the United States

Regulators, policymakers, and stakeholders in several states have raised concerns about the price elasticity of residential customers’ electricity demand, especially as related to different customer subpopulations, management of critical end-uses, and enrollment approaches. This analysis sought to quantify the diversity of residential customer price elasticity in a time-of-use rate across these different dimensions using data generated from a utility pricing experiment. Finally, customers were found to be more elastic during the peak period of critical peak days, who were predicted to own and use air conditioning, and who volunteered for time-of-use (TOU) rates (but those defaulted on were 25% as elastic).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
NASA NTRS1978

An analysis of long and medium-haul air passenger demand, volume 1

A basic model was developed which is a two equation pair econometric system in which air passenger demand and airline level-of-service are the endogenous variables. The model aims to identify the relationship between each of these two variables and its determining factors, and to identify the interaction of demand and level-of-service with each other. The selected variable for the measure of air passenger traffic activity in a given pair market is defined as the number of passengers in a given time that originate in one region and fly to the other region for purposes other than to make a connection to a third region. For medium and long haul markets, the model seems to perform better for larger markets. This is due to a specification problem regarding the route structure variable. In larger markets, a greater percentage of nonlocal passengers are accounted for by this variable. Comparing the estimated fare elasticities of long and medium haul markets, it appears that air transportation demand is more price elastic in longer haul markets. Long haul markets demand will saturate with a fewer number of departures than will demand in medium haul markets.

Eriksen, S. E.↗
NASA NTRS1998

Highly Reusable Space Transportation System Concept Evaluation (The Argus Launch Vehicle)

This paper summarizes the results of a conceptual design study that was performed in support of NASA's recent Highly Reusable Space Transportation study. The Argus concept uses a Maglifter magnetic-levitation sled launch assist system to accelerate it to a takeoff ground speed of 800 fps on its way to delivering a payload of 20,000 lb. to low earth orbit. Main propulsion is provided by two supercharged ejector rocket engines. The vehicle is autonomous and is fully reusable. A conceptual design exercise determined the vehicle gross weight to be approximately 597,250 lb. and the dry weight to be 75,500 lb. Aggressive weight and operations cost assumptions were used throughout the design process consistent with a second-generation reusable system that might be deployed in 10-15 years. Drawings, geometry, and weight of the concept are included. Preliminary development, production, and operations costs along with a business scenario assuming a price-elastic payload market are also included. A fleet of three Argus launch vehicles flying a total of 149 flights per year is shown to have a financial internal rate of return of 28%. At $169/lb., the recurring cost of Argus is shown to meet the study goal of $100/lb.-$200/lb., but optimum market price results in only a factor of two to five reduction compared to today's launch systems.

Olds, John R.↗
DOE OSTI2019

Generic modelling and optimal day-ahead dispatch of micro-energy system considering the price-based integrated demand response

As an extension of micro-grid, micro-energy system (MES) is one of the important carriers for energy utilization in the future, and using energy prices as a controllable resource is conducive to improving the optimization potential of MES. Firstly, based on the energy hub model, a generic method for modelling the steady-state energy balance equation of MES is proposed. Then, considering the multi-energy substitution effect in the background of multi-energy coupling, the concept of price-based integrated demand response (P-IDR) is introduced. Meanwhile, based on the price elasticity theory and the discrete choice theory, the energy timing transfer characteristics and energy substitution characteristics in P-IDR is modelled. Furthermore, after taking into account the P-IDR, an MINLP model for day-ahead dispatch of MES is built, and a generalized benders decomposition method is used for solution. Case studies are conducted on an MES to verify the effectiveness of the proposed modelling method. Here, the result shows that it is beneficial to improve renewable energy accommodation and reduce the peak and off-peak difference of energy load when the P-IDR is deployed. In addition, consider the energy substitution characteristics can reduce the user’s cost on energy purchase and be more in line with the user’s rational consumption behaviour.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2021

A dynamic price model based on supply and demand with application to techno-economic assessments of rare earth element recovery technologies

Rare Earth Elements (REEs) are essential for sustainable energy technologies. Techno-economic Assessments (TEAs) have been conducted to evaluate innovative approaches to recover REEs from waste streams. However, most TEA studies do not consider the price volatility of REEs, which raises concern over the reliability of the analysis in an unpredictable dynamic market. To address this shortcoming, a dynamic price model is proposed that adjusts REE price based upon supply-demand conditions. The dynamic market behavior is simulated and its effect on a TEA is examined via a case study. The results of the dynamic simulation indicate a growing trend of the market price for REE materials/products. Compared to a conventional TEA that does not consider price dynamics, a significant difference in economic performance metrics is identified from the dynamic TEA results. Finally, the proposed dynamic TEA method is not limited to a specific application and can provide insights for evaluating a broad range of technologies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗