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In the US, does it take into account elasticity of demand? If price per kwh doubles, but energy budgets are stuck, how does this appear in the CPI.
by s1artibartfast 2y ago
In the US, does it take into account elasticity of demand?
If price per kwh doubles, but energy budgets are stuck, how does this appear in the CPI.
- JumpCrisscross 2y ago> If price per kwh doubles, but energy budgets are stuck, how does this appear in the CPI It doubles. “BLS calculates and publishes average price series for price per kWh of electricity, per therm of utility (piped) gas service, and per gallon of fuel oil” [1]. (Not sure about PCE.) [1] https://www.bls.gov/cpi/factsheets/household-energy.htm https://www.bls.gov/cpi/factsheets/household-energy.htm
- s1artibartfast 2y agoThanks! I wonder if or how they handle things like grid connection fees or California income based pricing.