NEMS Forecast Evaluation Methodology

 

 

This is a working document prepared as a job of work (DE-AP01-06EI38129.A000) on behalf of the Energy Information Administration (EIA) in order to solicit advice and comment on methods for evaluating EIA forecasts.

 

 

 

Summary

 

The purpose of the methodology proposed here is to propose a way to assess the accuracy of National Energy Modeling System (NEMS) projections.  NEMS is configured to project future energy product production and consumption in a fashion that accounts for the wide range of detailed circumstances that result in multi-market economic equilibria for energy products. In addition to market forces NEMS accounts for technological change and the impact of government actions and policies. The evaluation methodology presented here calls for constructing statistical approximations of important energy market relationships implicit to NEMS, e.g., residential and commercial sector energy consumption. The approximations will be derived from solutions designed to isolate important influences and regression analyses of the NEMS solutions prepared in support of the Annual Energy Outlook (AEO). The approximations are to be specified to account for important, explanatory relationships, e.g., the elasticity of sectoral energy consumption to the sectoral price of energy. Based on this, “differences” between NEMS projections and the actual values of the variables projected can be partitioned among general uncertainty, “errors” in projecting explanatory variables, structural changes in market behavior, and transitory influences such as the weather. An illustration of the approach is provided for residential and commercial sector demand for delivered energy, utilizing the versions of NEMS used in support of the 1998 – 2000 AEO’s.

 

 

 

 

January 2007

 

 

NEMS Forecast Evaluation Methodology

 

I. Background. In principle, an evaluation of NEMS forecast accuracy that accounts for the various sources of differences between forecast and actual values can be readily accomplished. The form of the model, in brief, involves projecting a variety of important influences on energy markets, e.g., technology and the parameters of consumer behavior. Based on the projections of these “conditional variables” the model then determines the corresponding multi-energy-market equilibria with the associated projections of energy product prices and quantities. When a forecast period actually occurs, and the actual values of the conditional variables are known, the model can be re-run using the actual values for model assumptions and the resulting projections compared to the actual prices and quantities. The impact of individual conditional variables can be determined by differentially using the original projections and the actual values, ceteris paribus. Routines within the model might also be amended to account for changes in government policies, technologies, or consumer behavior. Extra-model influences such as weather could also be accounted for in the historical period, independent of NEMS,  or using NEMS’ own routines for processing the impact of weather variables. In general, the size of the model and need to maintain, and then run,  non-current versions of the model over many years appear to make this approach impracticable. In any event, this approach has not been attempted. To do so, among other requirements, would entail archiving and re-implementing versions of NEMS years and even decades after their current use. A multitude of problems suggest that this approach is too expensive, and perhaps not possible as a practical matter.

In spite of these difficulties, it remains desirable to assess the degree to which NEMS projections differ from the eventual, historical values, as related to differences between the assumed and actual values of important conditional variables. The reason for this is that NEMS structure is explicitly intended to enable detailed, conditional evaluations of many distinct influences upon energy consumption and production. This model structure is intended to support detailed analyses of alternative energy policies and contingent future circumstances. Accordingly, the merits of the model’s approach requires an assessment of model performance that embodies, to the degree practicable, the same level of detail as it relates to projected versus actual outcomes for the variables forecast by the model.

 

II. Proposed Method. An alternative to running NEMS in a fully integrated fashion, using actual values for the conditional variables, is to isolate the  explanatory variables at issue for each model component before the fact, at the time a current version of NEMS is formulated. . Model solutions can be constructed particular to each NEMS component that embody changes in important assumptions. Given this, the underlying interrelationships, e.g., price elasticities of supply and demand, can be determined for a current version of the model and then retained. In general, the method would be to selectively change important assumptions, ceteris paribus, and catalogue the corresponding sensitivities. Later, these sensitivities could be applied to actual data to determine the basis for forecast differences without having to archive and re-run the corresponding version of NEMS (This was done for RSTEM in Costello (2006) Reduced Form Energy Model Elasticities from EIA’s Regional Energy Model (RSTEM)  , released 5/9/2006 as a one time report, for price and weather elasticities)  A differential accounting for the impact of differences in projected versus actual  “conditional variables” could still be approximated from the sensitivities. As before, extra-model, transitory influences on the historical values could also be accounted for. The basis for the approach is to detect the important market sensitivities implicit to NEMS’ representation of energy markets for each version of the model. This approach was implemented in support of the preparation of the methodology with respect to the effects of changes in the weather on residential and commercial sector consumption. The elasticities derived from these, stand alone solutions in comparison to a reference case (in this case the AEO2007 base case), provide a means to assess the impact of actual versus assumed weather for the period forecast by the model without having to archive the AEO2007 version of NEMS for later use. An illustration of accounting for weather using these elasticities is given below with details in Appendix A. In general, the construction of a set of NEMS solutions relative to a base case with variations specified to account for important influences is the preferred starting point for the evaluation methodology proposed here.

 

There is an alternative method for extracting the underlying sensitivities implicit to NEMS. The approach noted above would be to solve NEMS components, relative to a base or reference case, with each important assumption, e.g.,  the residential sector price of energy, changed, individually (with all other assumptions held constant), and compare results. The alternative method is to estimate the market sensitivities implicit to NEMS based upon the solutions prepared each year for the AEO. Among other ways, NEMS solutions are saved in a binary format and can be processed by the PC-based graphic interface Graf2000. Solution data have been saved in this format starting with those prepared for the 1998 AEO. This utility includes a regression component that enables regression analysis to be conducted using resident data; and, a data extraction routine that enables any collection of solution series to be extracted and input to other statistical procedures. Initially, this method entails no additional resource requirements in terms of running NEMS or archiving versions of NEMS for use at a future time.1 Instead, the solution sets for the AEO versions of NEMS can be pooled for the projections to be evaluated at a future time.

The basic approach is to specify the underlying energy market supply and demand relationships in terms of their important, explanatory variables; and, given this, to estimate the relationships based upon NEMS solution data. The results of the estimates provide a description of the NEMS model version in terms of how energy markets are represented. The actual specifications utilized would be guided by the expertise of the EIA staff responsible for developing and maintaining individual model components. Since the solution sets can be readily archived, the actual regression analyses need not be conducted until the time that a model version is to be evaluated, although the outcomes of the regressions can have immediate diagnostic use in NEMS development.2 A demonstration of the general success of representing NEMS components via regression analysis is given in: Buck and Lady, “Approximation of Large, Computer-Based Economic Models,” presented at annual meetings of International Atlantic Economic Association on October 9, 2005 in New York City, New York. A copy of the paper can be downloaded from the link:

http://optima-com.com/buck_lady/AES_Paper.htm

 

It is proposed to configure the means of performing the differential analyses, as based upon specialized NEMS runs or the regression analysis of NEMS solutions,  in a fashion that can be routinely conducted and maintained by EIA staff. The goal of the statistical analysis is to enable the errors in EIA forecasts to be explicitly decomposed with respect to influences such as the following:

            Transitory Influences, e.g., weather, strikes, accidents, embargoes not accounted for in the projections.(* for weather)

 

            Institutional Influences, e.g., changes in laws and regulations and changes in data series definitions compared to model assumptions.

 

            Structural Influences, e.g., changes in resource availability or energy use technology compared to model assumptions.*

 

            Errors in Projecting Conditional Variables, e.g., differences in the eventual values of activity drivers and other exogenous factors such as GDP and population.*

 

            Errors in Behavioral Parameters, e.g., changes in consumer price sensitivities compared to those assumed by the forecasting methodology.*

 

            Uncertainty, e.g., the residual error of the projection method.*

 

The methodology for partitioning forecast differences among (such as) the influences outlined above is as follows for the items indicated by “*”, given the availability of actual data for previously forecast values.

 

In the case of elasticities derived from specialized, NEMS runs, the results will be applied directly to the differences between the assumed and actual values of the conditional variables. This approach is outlined below in the case of accounting for the weather. In the case of the regression equations, the equations derived to represent the important relationships of supply and demand are  re-run using the actual values for the explanatory variables. The actual values are substituted for the values used (or solved for) in the original projections, one explanatory variable at a time. This enables the identification of the influence of each explanatory variable separately. The equation is then re-run with all explanatory variables assigned their actual values. For this case, the residual error is due to general  forecasting "uncertainty" or other, structural changes. Structural change is the issue of whether or not the values of the coefficients in the forecasting equation have changed for the forecast period compared to the model version to which the equation had been "fit." The equation is re-estimated and the results compared to the outcome of the estimation used to approximate the characteristics of the model. One method to assess if there were significant "differences" between the original, and revised, estimate is the Chow test (Chow, Gregory, "Tests of Equality Between Sets of Coefficients in Two Linear Regressions," Econometrica, 28, (July 1960), pp. 591-605.). Events influencing the actual data not accounted for by the forecasting equation will be identified and evaluated by EIA staff as appropriate.

 

NEMS design is intended to enable the differential assessment of changes in many influences on energy consumption and production. The present methodology for evaluating NEMS projections, e.g., as presented in:

 

http://www.eia.doe.gov/oiaf/analysispaper/forecasteval/index.html),

 

assesses the accuracy of projections of seventeen aggregate variables, e.g., total energy consumption. A review of this method was presented in: Winebrake, James and Denya Sakva (2006), "An evaluation of errors in U.S. energy forecasts: 1982-2003," Energy Policy, 34, pp. 3475-3483. This article assessed the AEO forecast evaluation and found that the apparent accuracy of aggregate forecast series was somewhat misleading when the series were broken down into their components. Their examples were EIA projections of energy consumed in the U.S. These showed errors of between 1.7% to 4.8% depending upon the time horizons considered. They then showed that the components of the total really had much larger errors for the individual residential, commercial, industrial, and transportation sector consumption forecasts, with these errors off-setting, e.g., half of the forecast values could be 12% high and the other half 9% low, with the aggregate projections being just 3% high. Their conclusion was that an analysis of the components of the aggregate total was necessary to get a feeling for how well the forecast method was doing. The proposed method here takes that point one step further: When assessing the accuracy of a forecast, an assessment of the sources of error is also necessary to evaluating accuracy. Here too errors can be off-setting with the resulting forecast accuracy being somewhat misleading, e.g., a demand forecast might seem accurate; but in fact, there was a large positive error due to the projected price being significantly lower that the historical value; and, a large negative error due to underestimating the associated activity driver. The point of the method being presented here is to find a practical way to parse these individual sources of error out of a comparison of the interrelationships within NEMS with historical data. It is advocated that an assessment of forecast error in these terms is important to evaluating NEMS’ accuracy in projecting the differential impacts of individual influences on energy markets.

 

III. An Example for Residential and Commercial Sector Consumption of Delivered Energy. The example presented here is intended to be illustrative and indicative of the methodologies proposed, rather than a definitive evaluation of NEMS projections of residential and commercial sector energy demand.

 

 

III.1 Weather Elasticities.

 

III.I.1 Sources: The effects of weather on energy consumption are estimated by comparing actual weather to “normal” weather using the measure Heating Degree Days (HDD) for the fall/winter season and Cooling Degree Days (CDD) for the spring/summer season. Given these measures, the weather effect is then derived by employing “weather elasticities.” These measures, however derived, represent the percentage change in energy consumption per one percent change in HDD or CDD from “normal” values. There is more than one source for both the HDD and CDD measures as well as the associated elastiticies. The sources used here are given below.

 

(1) Historical values for the HDD and CDD measures, Tables 1.7 and 1.8, in the Annual Energy Review (DOE/EIA-0384(2005)) posted on the EIA website July 27, 2006.

 

(2) Historical values for the HDD and CDD measures in 2005, with estimated values for 2006 and 2007, Table 1, in the Short-Term Enery Outlook, December 12, 2006 release posted on the EIA website.

 

(3) Historical values for the HDD and CDD measures in 2001 – 2005 with estimated values for 2006 and “presumably normal” values for 2007-2030 in the AEO 2007 NEMS base case solution file aeo2007.1121a.ran.

 

(4) Weather elasticities for selected fuels for energy consumption in the residential and commercial sectors given in: Final Reduced Form Energy Model Elasticities from EIA's Regional Short-Term Energy Model (RSTEM) May 2006 (PDF file) derived from a comparative statics analysis of the Regional Short-Term Energy Model (RSTEM)..

 

(5) Weather elasticities for the residential and commercial sector as derived from a comparison of the AEO2007 base case cited in (3) above to two special NEMS solutions prepared, ceteris paribus, with, HDD values increased by 10% (rsaeo07.1205a.ran) and CDD values increase by 10% (rsaeo07.1205b.ran).

 

III.I.2 HDD and CDD Measures. An assessment of the method of deriving HDD and CDD measures by each of the three sources cited above has not been done. Small differences can be seen in the measures as presented below.

 

Historical HDD (with estimates for 2006 and 2007)

Year              AER               NEMS              RSTEM            

 1995              4531             *                 *                

 1996              4713             *                 *                

 1997              4542             *                 *                

 1998              3951             *                 *                

 1999              4169             *                 *                

 2000              4460             *                 *                

 2001              4223              4157             *                

 2002              4284              4257             *                

 2003              4460              4432             *                

 2004              4290              4254             *                

 2005              4228              4272              4315            

 2006             *                  4094              4124            

 2007             *                  4370              4451            

Normal             4524

 

Historical CDD (with estimates for 2006 and 2007)

Year              AER               NEMS              RSTEM            

 1995              1293             *                 *                

 1996              1180             *                 *                

 1997              1156             *                 *                

 1998              1410             *                 *                

 1999              1297             *                 *                

 2000              1229             *                 *                

 2001              1245              1287             *                

 2002              1393              1406             *                

 2003              1290              1313             *                

 2004              1232              1258             *                

 2005              1444              1421              1395            

 2006             *                  1436              1381            

 2007             *                  1293              1239            

Normal              1215

 

 

 III.I.3 NEMS Weather Elasticities. Weather elasticities were calculated by comparing the NEMS solutions cited in (5) above for the years 2007-2030. Three methods, roughly equivalent, were used to compute the value of the elasticity. Let HDD1 and HDD2 be, respectively, the values for the HDD measure in the NEMS base case and cold winter cases. Let CDD1 and CDD2 be defined correspondingly for the warm summer case. Let Q1 and Q2 be the consumption projections for a selected fuel for the base case and weather case. The three methods for computing the HDD elasticity were:

 

Arc Elasticity = %∆Q/%∆HDD = ((Q2-Q1)/(HDD2-HDD1))((HDD2+HDD1)/(Q2+Q1)).

 

The arc elasticity uses the average of the two cases for the percentage base.

 

Base % Elasticity = %∆Q/%∆HDD = ((Q2-Q1)/(HDD2-HDD1))(HDD1/Q1)).

 

The base % elasticity uses the base case values as the percentage base.

            Constant Elasticity. The constant elasticity assumes that the functional relationship that describes energy consumption as related to the HDD measure is given by Q = A(HDD)E, where E is the elasticity and A accounts for all other influences on consumption. For the base case and weather case the value of E is found by solving the linear system:

 

Log(Q1) = log(A) + E(Log(HDD1));

 

Log(Q2) = Log(A) + E(Log(HDD2)).

 

Given this,

 

E = dLog(Q)/dLog(HDD).

 

The elasticities with respect to the CDD measure were found in the same way. Below are the elasticities from the NEMS scenarios cited in (5) above for the year 2007 (for purposes of illustration) compared to the RSTEM elasticities cited in (4).

 

Weather Elasticities

 

HDD

CDD

Fuel

NEMS

RSTEM

NEMS

RSTEM

Residential:

Liquids

 

.601

 

*

 

*

 

*

Natural Gas

.554

.880

*

-.01

Electricity

.078

.180

.120

.263

Total Delivered

.385

*

.048

*

 

 

 

 

 

Commercial:

Liquids

 

.269

 

*

 

*

 

*

Natural Gas

.451

.526

.01

-.017

Electricity

.042

.015

.127

.110

Total Delivered

.212

*

.07

*

 

III.I.4 Weather Impacts. For purposes of illustration, the NEMS elasticities above (for the year 2007) were applied to historical data for the period 1995-2005. The elasticity used was the “constant elasticity” case. Although there are small differences compared to NEMS (for the years that can be compared), the AER data cited above in (1) for actual and “normal” weather were utilized. The “weather impact” estimated is the degree to which actual consumption is different from “if normal weather” consumption. The method utilized is as follows for the elasticity E.

 

First, the value for “A” is computed in the formula:

 

Actual Q = A(Actual HDD or CDD)E.

 

Then, given “A,”

 

if normal Q = A(Normal HDD or CDD)E.

 

The weather impact or adjustment is then computed as,

 

adjustment = (if normal Q) – (actual Q).

 

For example, in 2005 actual delivered energy consumed by the residential sector was 11.6 quads. In that year, as measured by HDD, the fall winter season was only 93.46% as cold as a “normal” season. Using the corresponding HDD elasticity (=.3848), if weather had been “normal,” then the consumption of delivered energy would have been 11.9 quads. Accordingly, the weather impact, or adjustment, is .3 quads, i.e., consumption was lower by .3 quads due to warmer weather than it otherwise would have been had weather been as cold as “normal.” Accordingly, a NEMS projection of residential energy consumption in 2005 would be .3 quads high, due to the warmer actual winter compared to the assumed to be colder normal winter (the results are only indicative since the HDD and CDD assumptions for normal and actual weather for NEMS and the AER exhibit some differences).

 

In the tables below, the weather adjustments are presented for the residential and commercial sectors for delivered energy and selected fuels consumed. In the appendix following this section, the elasticities calculated from the solutions cited in (5) above are presented.

 

 

 

HDD-Related Adjustments

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy          

HDD Weather Elasticity = .3848

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              10.46122          100.15           -.0062             10.455          

 1996              11.12847          104.18           -.1739             10.9546         

 1997              10.66744          100.4            -.0162             10.6512         

 1998              10.23326          87.33             .5474             10.7807         

 1999              10.64985          92.15             .3403             10.9901         

 2000              11.1721           98.59             .0614             11.2335         

 2001              10.91906          93.35             .2931             11.2122         

 2002              11.16996          94.69             .2367             11.4067         

 2003              11.52878          98.59             .0634             11.5922         

 2004              11.39384          94.83             .2353             11.6291         

 2005              11.59748          93.46             .3059             11.9034         

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

HDD Weather Elasticity = .2118

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              7.329521          100.15           -.0024             7.3271          

 1996              7.594991          104.18           -.0656             7.5294          

 1997              7.77284           100.4            -.0065             7.7663          

 1998              7.65573           87.33             .2228             7.8785          

 1999              7.781741          92.15             .1359             7.9176          

 2000              8.170951          98.59             .0246             8.1956          

 2001              8.11114           93.35             .1192             8.2303          

 2002              8.21455           94.69             .0954             8.3099          

 2003              8.388131          98.59             .0254             8.4135          

 2004              8.398893          94.83             .095              8.4939          

 2005              8.461396          93.46             .1221             8.5835          

 

 

 

 

 

 

 

 

 

CDD-Related Adjustments

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy          

CDD Weather Elasticity = .0483

Year              Actual            %d(CDD)           Adjustment        If Normal        

 1995              10.46122          106.42           -.0314             10.4298         

 1996              11.12847          97.12             .0157             11.1442         

 1997              10.66744          95.14             .0257             10.6931         

 1998              10.23326          116.05           -.0733             10.16           

 1999              10.64985          106.75           -.0336             10.6163         

 2000              11.1721           101.15           -.0062             11.1659         

 2001              10.91906          102.47           -.0129             10.9062         

 2002              11.16996          114.65           -.0736             11.0964         

 2003              11.52878          106.17           -.0333             11.4955         

 2004              11.39384          101.4            -.0076             11.3862         

 2005              11.59748          118.85           -.0963             11.5012          

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

CDD Weather Elasticity = .0702

Year              Actual            %d(CDD)           Adjustment        If Normal        

 1995              7.329521          106.42           -.0319             7.2976          

 1996              7.594991          97.12             .0156             7.6106          

 1997              7.77284           95.14             .0272             7.8             

 1998              7.65573           116.05           -.0795             7.5762          

 1999              7.781741          106.75           -.0356             7.7461          

 2000              8.170951          101.15           -.0066             8.1644          

 2001              8.11114           102.47           -.0138             8.0973          

 2002              8.21455           114.65           -.0785             8.1361          

 2003              8.388131          106.17           -.0352             8.3529          

 2004              8.398893          101.4            -.0082             8.3907          

 2005              8.461396          118.85           -.102              8.3594           

 

 

 

 

 

 

 

 

III.2 Using Regression Results From NEMS Solutions. A method preferred to that outlined below would be to utilize elasticities from NEMS solutions specially designed to isolate the associated sensitivities. This was the method used for the weather elasticities above. When this is not possible, the regression approach outlined here can be readily applied to NEMS solutions. To illustrate the proposed method, solution data from the 1998-2000 AEO versions of NEMS were assembled. A simple relationship was used to represent each sector’s demand:

 

Qt = A + B(Sector Price)t + C(Driver)t + DQt-1,

 

where Qt = sectoral consumption of delivered energy in year t, (Sector Price)t = the average price of energy delivered to the sector in year t ($ per million Btu), and (Driver)t = a sectoral “activity” variable. The driver for the residential sector was millions of households and the driver for the commercial sector was billions of square feet. The lagged endogenous variable picks up secular trends in such as energy intensity, the average size of a household, and other infrastructure or behavioral characteristics.  Since the AEO hi/lo GDP cases represent shifts in energy demand, to accommodate issues of identification, the regressions were performed on data pooled from the AEO Base Case and the hi/lo WOP cases. The regressions were run on the solution data for the years 2000-2020. Generally, the fit of the regressions was exceptionally good (regression results are in Appendix C below). Below are the results for the residential sector. The regression equations were then used with “actual” data (the solution values in the AEO 2006 NEMS solutions) for projections for the years 2000-2005 and the differences compared to the original forecast values. An example is provided below for the projections of residential consumption of (delivered) energy in the year 2005 as projected by the 2000 AEO version of NEMS.

 

Model = N_ResAll_00 for Year = 20054

Residential Energy Consumption: NEMS - Actual =-.28533 (as % =-2.44)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.02821          17.24             1.0614            9.08             -.277041          -.093418         

Driver             111.3056          115.3573         -.2825            -2.42              .685312           .57847          

Lag                11.33194          11.43521         -.016             -.14               .154078           .240553         

HDD                4524              4228              .2932             2.51              .385               n/a            

CDD                1215              1444             -.0949            -.81               .048               n/a            

Total                                                  .9612             8.22            

Uncertainty                                           -1.2465           -10.67           

 

The NEMS projection for 2005 was .28533 quads (or 2.44%) low as made for the 2000 AEO base case. The first five rows of the table evaluate the difference in the NEMS projection associated with actual, rather than assumed, values for each of the explanatory variables. The first three are from the regression equation while the assessment of the weather using heating degree days (HDD) and cooling degree days (CDD) was made independently (see section III.1 above and Appendix A). In each row the value assumed for the 2000 AEO is compared with the actual value in 2005. The impact, in quads, is the difference in the projected versus actual value associated with the explanatory variable. For example the average price of energy assumed for the 2000 AEO was over 24% lower than the actual price in 2005.3 As a result, given the estimated residential sector price elasticity of  -.277, the forecast value figured to be 1.0614 (9.08%) high. In contrast, the NEMS assumption for residential households was 3.5% low with an estimated impact (from the regression approximation of residential sector demand) of 2.42%. When the lag and weather effects were added in, the NEMS projection figured to be 8.22% high. But in fact it was 2.44% low. The corresponding uncertainty, or “unexplained” variation is, therefore, -10.28%.5

 

This differential analysis of forecast differences was performed for each of the years 2000-2005. A table summarizing the outcome of the analysis for each year is provided below.

 

Residential Sector Projection % Differences: Model = N_ResAll_00

Year               2000              2001              2002              2003              2004              2005            

NEMS%             -2.04              .91              -.84              -2.61             -.9               -2.44            

Adjustments%        1.8               4.57              1.16              1.08              4.27              8.22            

Uncertainty%      -3.83             -3.66             -1.99             -3.69             -5.17             -10.67           

 

Inspection of the table reveals that NEMS projections were generally low for each year (with 2001 the exception) while the backcast adjustments suggested that NEMS projections should have been high. A more detailed analysis would accompany a regression equation with more explanatory variables. One hint for the example used is that the “updated” price elasticity, derived by running the same regression equation for the 2006 AEO version of NEMS shows a significantly lower price elasticity. As given above, a formal analysis of structural change across NEMS versions will be conducted using the Chow Test, or related statistical procedure. A plot summarizing the comparison of the NEMS projection compared to the backcast projection is provided below.

 

 

In the above plot “NEMS SIM” is the projection provided by the statistical approximation of the 2000 AEO NEMS version residential sector demand function. The “Backcast” is that provided by the regression equation using actual values for the explanatory variables. As noted, the projected values tended to be low, but the impacts of errors in projecting the corresponding explanatory variables led to the estimate that the NEMS projection should have been high, i.e., the backcast projections should be low. These results imply the significance of features of the NEMS residential sector demand relationship not accounted for in the regression equation utilized for this example; and/or, other, extra-NEMS impacts upon consumption not accounted for in the illustration developed here.

 

Appendix A presents a summary of the results of the NEMS solutions prepared to isolate weather impacts. Appendix B presents the year by year workup for each of the approximations of NEMS residential and commercial sector demand for the 1998-2000 versions of NEMS. Appendix C provides the regression results for the sectoral demand approximations. Appendix D provides remarks by OIAF staff on the data entries in the AEO2007 NEMS solutions for the years 1995-2005 compared to historical values for these years.

 

Notes

 

1. A fair number of NEMS scenarios are run in support of each AEO, e.g., around forty were run for the AEO2006, in order to reveal important sensitivities and uncertainties. As the use of regression analysis of solution data is developed for the purposes proposed here, some number of additional runs might be formulated to facilitate the isolation of important influences for the ultimate evaluation of NEMS projections. As noted below, the formulation of weather scenarios might facilitate an accounting for weather effects as they  cause actual variable values to deviate from forecast values.

 

2. Large changes in year to year implicit sensitivities could detect anomalies in model development.

 

3. The monetary units used for prices in the AEO lag the current period by two years. Accordingly, prices for the 2000 AEO are in $1998 while those in the 2006 AEO are in $2004. Actual prices for each AEO version are converted to the monetary units used in the contemporary AEO. The price index used to adjust monetary units to those used in each NEMS version was the “GDP Chain-Type Price Index,” as  taken from Table B-3 (Appendix B) of the  2006 Economic Report of the President.

 

4. In the automated simulations of NEMS solutions supporting the examples presented here, “N_ResAll_##” stands for the regression-based approximation of NEMS residential sector energy demand with ## ranging from 98-00 for the 1998-2000 AEO version of NEMS. “N_ComAll_##” similarly stands for the approximation of NEMS commercial sector energy demand.

 

5. (Total Impact) + Uncertainty = NEMS – Actual.

 

 

 

 

Appendix A: Derivation of the Weather Adjustment Impact Multiplier

 

The tables below give weather adjustments derived using the 2007 HDD and CDD weather elasticities as computed from a comparison of the AEO2007 base case and two custom NEMS solutions one with HDD increased by +10% and the other with CDD increased by +10%.

 

HDD-Related Adjustments

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Liquid Fuels Subtotal      

HDD Weather Elasticity = .6013

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              1.38331           100.15           -.0013             1.382           

 1996              1.48805           104.18           -.0361             1.4519          

 1997              1.42806           100.4            -.0034             1.4247          

 1998              1.31383           87.33             .1115             1.4253          

 1999              1.47267           92.15             .0741             1.5468          

 2000              1.56307           98.59             .0134             1.5765          

 2001              1.53862           93.35             .0651             1.6037          

 2002              1.4625            94.69             .0487             1.5112          

 2003              1.53884           98.59             .0133             1.5521          

 2004              1.55437           94.83             .0504             1.6048           

 2005              1.53552           93.46             .0638             1.5993          

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Natural Gas                  

HDD Weather Elasticity = .5538

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              4.98352           100.15           -.0042             4.9793          

 1996              5.39054           104.18           -.1208             5.2697          

 1997              5.12495           100.4            -.0113             5.1137          

 1998              4.67104           87.33             .3638             5.0348          

 1999              4.85683           92.15             .2249             5.0817          

 2000              5.0998            98.59             .0404             5.1402          

 2001              4.90693           93.35             .1907             5.0976          

 2002              4.994331          94.69             .1531             5.1474          

 2003              5.229481          98.59             .0414             5.2709          

 2004              5.016002          94.83             .1497             5.1657          

 2005              4.984002          93.46             .1903             5.1743          

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Electricity                  

HDD Weather Elasticity = .0781

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              3.55701           100.15           -.0004             3.5566          

 1996              3.69353           104.18           -.0118             3.6817          

 1997              3.67091           100.4            -.0011             3.6698          

 1998              3.85594           87.33             .041              3.8969          

 1999              3.90649           92.15             .025              3.9315          

 2000              4.06864           98.59             .0046             4.0732          

 2001              4.098272          93.35             .0221             4.1204          

 2002              4.317502          94.69             .0184             4.3359          

 2003              4.345447          98.59             .0049             4.3503          

 2004              4.41363           94.83             .0184             4.432           

 2005              4.65656           93.46             .0246             4.6812          

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy           

HDD Weather Elasticity = .3848

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              10.46122          100.15           -.0062             10.455          

 1996              11.12847          104.18           -.1739             10.9546         

 1997              10.66744          100.4            -.0162             10.6512         

 1998              10.23326          87.33             .5474             10.7807         

 1999              10.64985          92.15             .3403             10.9901         

 2000              11.1721           98.59             .0614             11.2335         

 2001              10.91906          93.35             .2931             11.2122         

 2002              11.16996          94.69             .2367             11.4067         

 2003              11.52878          98.59             .0634             11.5922         

 2004              11.39384          94.83             .2353             11.6291         

 2005              11.59748          93.46             .3059             11.9034         

 

 

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Liquid Fuels Subtotal     

HDD Weather Elasticity = .2691

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              .73206            100.15           -.0003             .7318           

 1996              .7513301          104.18           -.0082             .7431           

 1997              .70388            100.4            -.0008             .7031           

 1998              .66083            87.33             .0246             .6854           

 1999              .6613801          92.15             .0147             .6761           

 2000              .75635            98.59             .003              .7593           

 2001              .74168            93.35             .0138             .7555            

 2002              .68099            94.69             .0101             .6911           

 2003              .7708901          98.59             .003              .7739           

 2004              .758963           94.83             .0109             .7699           

 2005              .7722571          93.46             .0141             .7864           

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Natural Gas                  

HDD Weather Elasticity = .4506

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              3.1165            100.15           -.0022             3.1143          

 1996              3.25094           104.18           -.0594             3.1915          

 1997              3.30639           100.4            -.0059             3.3005          

 1998              3.09815           87.33             .195              3.2931          

 1999              3.13194           92.15             .1175             3.2494          

 2000              3.25438           98.59             .0209             3.2753          

 2001              3.11164           93.35             .0981             3.2097           

 2002              3.22363           94.69             .0802             3.3038          

 2003              3.33061           98.59             .0215             3.3521          

 2004              3.226009          94.83             .0781             3.3041          

 2005              3.14611           93.46             .0974             3.2435          

 

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Electricity                 

HDD Weather Elasticity = .0421

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              3.25205           100.15           -.0002             3.2518          

 1996              3.34397           104.18           -.0058             3.3382          

 1997              3.50285           100.4            -.0006             3.5023          

 1998              3.67799           87.33             .021              3.699           

 1999              3.76624           92.15             .013              3.7792          

 2000              3.95569           98.59             .0024             3.9581          

 2001              4.06351           93.35             .0118             4.0753          

 2002              4.1115            94.69             .0094             4.1209          

 2003              4.08484           98.59             .0025             4.0873          

 2004              4.194             94.83             .0094             4.2034          

 2005              4.32186           93.46             .0123             4.3342          

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

HDD Weather Elasticity = .2118

Year              Actual            %d(HDD)           Adjustment        If Normal        

 1995              7.329521          100.15           -.0024             7.3271          

 1996              7.594991          104.18           -.0656             7.5294          

 1997              7.77284           100.4            -.0065             7.7663          

 1998              7.65573           87.33             .2228             7.8785          

 1999              7.781741          92.15             .1359             7.9176          

 2000              8.170951          98.59             .0246             8.1956          

 2001              8.11114           93.35             .1192             8.2303          

 2002              8.21455           94.69             .0954             8.3099          

 2003              8.388131          98.59             .0254             8.4135          

 2004              8.398893          94.83             .095              8.4939          

 2005              8.461396          93.46             .1221             8.5835          

 

Base Solution = aeo2007.1121a.ran

HDD+10% Weather Solution = rsaeo07.1205a.ran

 

 

 

CDD-Related Adjustments

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Electricity                 

CDD Weather Elasticity = .1191

Year              Actual            %d(CDD)           Adjustment        If Normal        

 1995              3.55701           106.42           -.0263             3.5307          

 1996              3.69353           97.12             .0129             3.7064          

 1997              3.67091           95.14             .0218             3.6927          

 1998              3.85594           116.05           -.0677             3.7882          

 1999              3.90649           106.75           -.0303             3.8762          

 2000              4.06864           101.15           -.0055             4.0631          

 2001              4.098272          102.47           -.0119             4.0864          

 2002              4.317502          114.65           -.0697             4.2478          

 2003              4.345447          106.17           -.0308             4.3146          

 2004              4.41363           101.4            -.0073             4.4063          

 2005              4.65656           118.85           -.0948             4.5618          

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy          

CDD Weather Elasticity = .0483

Year              Actual            %d(CDD)           Adjustment        If Normal         

 1995              10.46122          106.42           -.0314             10.4298         

 1996              11.12847          97.12             .0157             11.1442         

 1997              10.66744          95.14             .0257             10.6931         

 1998              10.23326          116.05           -.0733             10.16           

 1999              10.64985          106.75           -.0336             10.6163         

 2000              11.1721           101.15           -.0062             11.1659         

 2001              10.91906          102.47           -.0129             10.9062         

 2002              11.16996          114.65           -.0736             11.0964         

 2003              11.52878          106.17           -.0333             11.4955         

 2004              11.39384          101.4            -.0076             11.3862         

 2005              11.59748          118.85           -.0963             11.5012         

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Natural Gas                 

CDD Weather Elasticity = .0096

Year              Actual            %d(CDD)           Adjustment        If Normal         

 1995              3.1165            106.42           -.0019             3.1146          

 1996              3.25094           97.12             .001              3.2519          

 1997              3.30639           95.14             .0016             3.308           

 1998              3.09815           116.05           -.0045             3.0937          

 1999              3.13194           106.75           -.0019             3.13            

 2000              3.25438           101.15           -.0004             3.254           

 2001              3.11164           102.47           -.0007             3.1109          

 2002              3.22363           114.65           -.0042             3.2194          

 2003              3.33061           106.17           -.0019             3.3287          

 2004              3.226009          101.4            -.0004             3.2256          

 2005              3.14611           118.85           -.0052             3.1409          

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Electricity                 

CDD Weather Elasticity = .1272

Year              Actual            %d(CDD)           Adjustment        If Normal        

 1995              3.25205           106.42           -.0257             3.2264          

 1996              3.34397           97.12             .0124             3.3564          

 1997              3.50285           95.14             .0222             3.5251          

 1998              3.67799           116.05           -.069              3.609           

 1999              3.76624           106.75           -.0311             3.7351          

 2000              3.95569           101.15           -.0058             3.9499          

 2001              4.06351           102.47           -.0126             4.0509          

 2002              4.1115            114.65           -.0709             4.0406          

 2003              4.08484           106.17           -.031              4.0538          

 2004              4.194             101.4            -.0074             4.1866          

 2005              4.32186           118.85           -.0939             4.228           

 

 

 

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

CDD Weather Elasticity = .0702

Year              Actual            %d(CDD)           Adjustment        If Normal        

 1995              7.329521          106.42           -.0319             7.2976          

 1996              7.594991          97.12             .0156             7.6106          

 1997              7.77284           95.14             .0272             7.8             

 1998              7.65573           116.05           -.0795             7.5762          

 1999              7.781741          106.75           -.0356             7.7461          

 2000              8.170951          101.15           -.0066             8.1644          

 2001              8.11114           102.47           -.0138             8.0973          

 2002              8.21455           114.65           -.0785             8.1361          

 2003              8.388131          106.17           -.0352             8.3529          

 2004              8.398893          101.4            -.0082             8.3907          

 2005              8.461396          118.85           -.102              8.3594          

 

 

Base Solution = aeo2007.1121a.ran

CDD+10% Weather Solution = rsaeo07.1205b.ran

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix A (Continued)

 

HDD Elasticities

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Liquid Fuels Subtotal     

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .6016             .5898             .6013           

 2008              .5947             .5829             .5944           

 2009              .5855             .5736             .5852           

 2010              .5781             .5661             .5778           

 2011              .5709             .5589             .5706           

 2012              .5641             .5521             .5638           

 2013              .5582             .5461             .5579           

 2014              .5525             .5405             .5522           

 2015              .5467             .5346             .5464           

 2016              .5402             .5281             .54             

 2017              .5353             .5231             .535            

 2018              .5293             .5171             .529            

 2019              .5219             .5097             .5216           

 2020              .5135             .5013             .5132           

 2021              .5037             .4915             .5034           

 2022              .4934             .4812             .4931           

 2023              .4825             .4703             .4822           

 2024              .4709             .4588             .4707           

 2025              .4592             .4471             .4589           

 2026              .4471             .4351             .4469           

 2027              .4348             .4229             .4346           

 2028              .4214             .4095             .4211           

 2029              .4064             .3947             .4062           

 2030              .3903             .3787             .39             

Average            .5126             .5006             .5123           

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Natural Gas                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .5541             .542              .5538           

 2008              .5567             .5447             .5565           

 2009              .5568             .5447             .5565           

 2010              .5583             .5463             .5581           

 2011              .56               .5479             .5597           

 2012              .5616             .5496             .5613           

 2013              .5633             .5512             .563            

 2014              .566              .5539             .5657           

 2015              .5674             .5554             .5671            

 2016              .5705             .5585             .5702           

 2017              .5749             .5629             .5746           

 2018              .5782             .5663             .5779           

 2019              .5802             .5682             .5799           

 2020              .5809             .5689             .5806           

 2021              .5799             .568              .5796           

 2022              .5774             .5655             .5772            

 2023              .574              .5621             .5737           

 2024              .5697             .5577             .5694           

 2025              .5641             .552              .5638           

 2026              .557              .5449             .5567           

 2027              .5497             .5376             .5494           

 2028              .5404             .5283             .5402           

 2029              .5296             .5175             .5294            

 2030              .5171             .5049             .5169           

Average            .562              .55               .5617           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Electricity                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .0782             .0747             .0781           

 2008              .0817             .0782             .0817           

 2009              .0817             .0781             .0816           

 2010              .0824             .0788             .0823           

 2011              .0837             .08               .0836           

 2012              .0846             .0809             .0845           

 2013              .0853             .0815             .0852           

 2014              .0864             .0827             .0864           

 2015              .0874             .0835             .0873           

 2016              .0879             .084              .0878           

 2017              .0882             .0843             .0881           

 2018              .0884             .0846             .0884           

 2019              .0884             .0845             .0883           

 2020              .0882             .0844             .0882           

 2021              .0878             .084              .0877           

 2022              .0872             .0834             .0871           

 2023              .0864             .0826             .0863           

 2024              .0859             .0821             .0858           

 2025              .0842             .0805             .0841           

 2026              .0825             .0789             .0824           

 2027              .0808             .0773             .0807           

 2028              .0791             .0756             .079            

 2029              .0772             .0738             .0771           

 2030              .0754             .072              .0753           

Average            .0841             .0804             .084            

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy          

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .3851             .3736             .3848           

 2008              .3853             .3738             .385            

 2009              .3823             .3708             .382            

 2010              .3806             .3691             .3803           

 2011              .3795             .3681             .3793            

 2012              .3784             .3669             .3781           

 2013              .3772             .3658             .377            

 2014              .3767             .3654             .3765           

 2015              .3756             .3642             .3753           

 2016              .3748             .3635             .3746           

 2017              .3746             .3632             .3744           

 2018              .3739             .3626             .3737            

 2019              .3724             .3611             .3722           

 2020              .3702             .3589             .3699           

 2021              .3672             .3559             .3669           

 2022              .3632             .352              .363            

 2023              .3587             .3475             .3584           

 2024              .3539             .3428             .3537           

 2025              .3481             .3371             .3479            

 2026              .3418             .3309             .3415           

 2027              .3354             .3246             .3351           

 2028              .3281             .3174             .3278           

 2029              .3199             .3094             .3197           

 2030              .3111             .3007             .3108           

Average            .3631             .3519             .3628           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Liquid Fuels Subtotal     

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .2693             .2598             .2691           

 2008              .2827             .2729             .2825           

 2009              .2751             .2655             .2749           

 2010              .2806             .2709             .2804           

 2011              .2815             .2717             .2813           

 2012              .2834             .2736             .2833           

 2013              .2821             .2724             .282            

 2014              .2861             .2762             .2859           

 2015              .2855             .2757             .2853           

 2016              .2849             .2751             .2847           

 2017              .2855             .2757             .2853           

 2018              .286              .2761             .2858           

 2019              .2865             .2766             .2863           

 2020              .2867             .2768             .2865           

 2021              .2869             .277              .2867           

 2022              .288              .2781             .2878           

 2023              .2882             .2783             .288            

 2024              .2895             .2795             .2893           

 2025              .2889             .279              .2887           

 2026              .29               .28               .2898           

 2027              .2909             .2809             .2907           

 2028              .2915             .2815             .2913           

 2029              .2912             .2813             .291            

 2030              .2926             .2826             .2924           

Average            .2856             .2757             .2854           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Natural Gas                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .4509             .4388             .4506           

 2008              .4494             .4373             .4491           

 2009              .4482             .4361             .4479           

 2010              .4489             .4368             .4486           

 2011              .4475             .4354             .4472           

 2012              .4463             .4343             .4461           

 2013              .4447             .4327             .4444           

 2014              .4442             .4322             .444            

 2015              .4397             .4277             .4394           

 2016              .4404             .4284             .4402           

 2017              .4387             .4267             .4384           

 2018              .4378             .4258             .4375           

 2019              .4371             .4251             .4368           

 2020              .4357             .4238             .4355           

 2021              .4342             .4223             .434            

 2022              .4324             .4205             .4322           

 2023              .4317             .4198             .4314           

 2024              .4307             .4188             .4305           

 2025              .4286             .4167             .4284           

 2026              .4261             .4143             .4259           

 2027              .4256             .4137             .4254           

 2028              .4232             .4114             .423            

 2029              .422              .4101             .4217           

 2030              .4206             .4087             .4203           

Average            .4369             .4249             .4366           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Electricity                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .0421             .0402             .0421            

 2008              .0405             .0387             .0405           

 2009              .0386             .0368             .0385           

 2010              .0389             .0371             .0388           

 2011              .0386             .0369             .0386           

 2012              .0376             .0359             .0376           

 2013              .0371             .0353             .037            

 2014              .0371             .0354             .037             

 2015              .0363             .0346             .0362           

 2016              .0356             .034              .0356           

 2017              .0348             .0332             .0348           

 2018              .0344             .0328             .0344           

 2019              .0341             .0325             .034            

 2020              .0335             .032              .0335           

 2021              .033              .0314             .0329            

 2022              .0325             .031              .0325           

 2023              .0329             .0313             .0328           

 2024              .0336             .032              .0335           

 2025              .0312             .0298             .0312           

 2026              .0311             .0297             .0311           

 2027              .0314             .03               .0314           

 2028              .0317             .0303             .0317            

 2029              .0312             .0298             .0312           

 2030              .0309             .0295             .0309           

Average            .0349             .0333             .0349           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .2119             .2039             .2118           

 2008              .2113             .2033             .2112           

 2009              .2092             .2012             .209            

 2010              .2099             .2019             .2097           

 2011              .2095             .2015             .2094           

 2012              .2087             .2007             .2085           

 2013              .2077             .1997             .2075           

 2014              .2074             .1995             .2073           

 2015              .2049             .1971             .2048           

 2016              .2043             .1965             .2041           

 2017              .2025             .1948             .2024           

 2018              .2014             .1937             .2013           

 2019              .2006             .1929             .2004           

 2020              .1993             .1916             .1992           

 2021              .198              .1903             .1978           

 2022              .1965             .1889             .1963           

 2023              .1956             .1881             .1955           

 2024              .195              .1874             .1948           

 2025              .1923             .1848             .1921           

 2026              .1908             .1834             .1906           

 2027              .1902             .1828             .19             

 2028              .1887             .1814             .1886           

 2029              .1873             .18               .1871           

 2030              .186              .1787             .1859           

Average            .2004             .1927             .2002       

 

 

 

 

 

CDD Elasticities

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:    Electricity                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .1191             .1141             .1191           

 2008              .1179             .1129             .1178           

 2009              .1174             .1124             .1173           

 2010              .1186             .1136             .1185            

 2011              .1207             .1156             .1206           

 2012              .1234             .1182             .1233           

 2013              .1266             .1213             .1265           

 2014              .1316             .1261             .1315           

 2015              .1365             .1309             .1364           

 2016              .1398             .1341             .1397           

 2017              .1444             .1384             .1442            

 2018              .1487             .1427             .1486           

 2019              .1518             .1456             .1517           

 2020              .1554             .1491             .1553           

 2021              .1586             .1522             .1585           

 2022              .1625             .156              .1624           

 2023              .165              .1584             .1649           

 2024              .1683             .1616             .1682            

 2025              .1707             .1639             .1706           

 2026              .1714             .1645             .1712           

 2027              .1727             .1658             .1725           

 2028              .1721             .1653             .172            

 2029              .1734             .1665             .1733           

 2030              .1731             .1662             .173            

Average            .1475             .1415             .1474    

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Residential:      Delivered Energy          

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .0483             .0461             .0483           

 2008              .048              .0459             .048            

 2009              .0481             .0459             .0481           

 2010              .0491             .0468             .049            

 2011              .0502             .048              .0502           

 2012              .0517             .0494             .0517           

 2013              .0532             .0508             .0532           

 2014              .0557             .0532             .0557           

 2015              .0574             .0548             .0573           

 2016              .0594             .0567             .0593           

 2017              .0618             .0591             .0618           

 2018              .0643             .0614             .0642           

 2019              .0662             .0632             .0661           

 2020              .0683             .0652             .0682           

 2021              .07               .0669             .07             

 2022              .0721             .0689             .0721           

 2023              .0738             .0705             .0738           

 2024              .076              .0727             .076            

 2025              .0776             .0742             .0775           

 2026              .0781             .0746             .078            

 2027              .0792             .0757             .0791           

 2028              .0794             .0759             .0793           

 2029              .0805             .077              .0804           

 2030              .0809             .0773             .0808           

Average            .0646             .0617             .0645           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Electricity                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .1273             .122              .1272           

 2008              .1243             .1191             .1242           

 2009              .1225             .1174             .1224           

 2010              .1221             .117              .122            

 2011              .1205             .1154             .1204           

 2012              .1184             .1134             .1183           

 2013              .1159             .111              .1158           

 2014              .1152             .1103             .1151           

 2015              .1138             .109              .1138           

 2016              .1121             .1074             .1121           

 2017              .1109             .1062             .1108           

 2018              .1101             .1055             .1101           

 2019              .1089             .1042             .1088           

 2020              .1082             .1036             .1081           

 2021              .1068             .1022             .1067           

 2022              .1064             .1018             .1063           

 2023              .1059             .1013             .1058           

 2024              .1068             .1022             .1067           

 2025              .1045             .1                .1044           

 2026              .104              .0996             .104            

 2027              .1047             .1002             .1046           

 2028              .1045             .1                .1044           

 2029              .1044             .0999             .1043           

 2030              .1037             .0992             .1036           

Average            .1117             .107              .1117           

 

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:    Natural Gas                 

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .0096             .0091             .0096           

 2008              .0092             .0088             .0092           

 2009              .0093             .0089             .0093           

 2010              .0101             .0097             .0101           

 2011              .0102             .0097             .0102           

 2012              .0104             .0099             .0104           

 2013              .0099             .0094             .0099            

 2014              .0107             .0102             .0107           

 2015              .0075             .0071             .0075           

 2016              .0105             .01               .0105           

 2017              .0099             .0095             .0099           

 2018              .0104             .0099             .0104           

 2019              .011              .0104             .0109           

 2020              .011              .0105             .011             

 2021              .0109             .0104             .0109           

 2022              .0108             .0103             .0108           

 2023              .0116             .011              .0116           

 2024              .0124             .0118             .0124           

 2025              .012              .0114             .012            

 2026              .0112             .0106             .0112           

 2027              .0125             .0119             .0125            

 2028              .012              .0114             .012            

 2029              .0125             .0119             .0125           

 2030              .013              .0124             .013            

Average            .0108             .0103             .0108           

      

 

 

 

 

Table #2 Energy Consumption by Sector and Source (quadrillion Btu, unless otherwise noted)

Sector and Source:  Commercial:      Delivered Energy          

 

year              Arc Elasticity    Base % Elas.      Constant Elas.   

 2007              .0703             .0672             .0702           

 2008              .0697             .0666             .0697           

 2009              .0681             .0651             .068            

 2010              .0683             .0653             .0683           

 2011              .0676             .0646             .0675           

 2012              .0667             .0637             .0666           

 2013              .0652             .0623             .0652           

 2014              .0654             .0625             .0653           

 2015              .0636             .0607             .0635           

 2016              .064              .0611             .0639           

 2017              .0634             .0606             .0634           

 2018              .0634             .0606             .0634           

 2019              .0631             .0603             .0631           

 2020              .063              .0602             .0629           

 2021              .0623             .0595             .0623           

 2022              .0623             .0595             .0623           

 2023              .0626             .0598             .0625           

 2024              .0636             .0608             .0636           

 2025              .0624             .0596             .0624           

 2026              .062              .0593             .062            

 2027              .0631             .0603             .0631           

 2028              .0631             .0603             .0631           

 2029              .0634             .0606             .0634           

 2030              .0634             .0606             .0634           

Average            .0646             .0617             .0645           

 

 

 

 

Appendix B: Backcast Results And Workup

 

In the tables below, N_ResAll_## and N_ComAll_## refer to NEMS solution data sets for the residential and commercial sectors for  the 1998, 1999, and 2000 AEO versions of NEMS, identified, respectively by ## = 98, 99, or 00.

 

 

Residential Sector Projection % Differences: Model = N_ResAll_98

Year               2000              2001              2002              2003              2004              2005             

NEMS%              1.83              5.06              3.05              1.08              2.67              .92             

Adjustments%        4.04              5.93              3.52              2.72              5.43              8.72             

Uncertainty%      -2.21             -.87              -.48              -1.64             -2.75             -7.79            

 

Model = N_ResAll_98 for Year = 2000

Residential Energy Consumption: NEMS - Actual = .20424 (as % = 1.83)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.45476          13.44             .2043             1.83             -.20489           -.093418         

Driver             105.3386          105.189           .0075             .07               .475539           .57847          

Lag                11.2109           10.66378          .1837             1.64              .333017           .240553         

HDD                4524              4460              .0623             .56               .385               n/a            

CDD                1215              1229             -.0063            -.06               .048               n/a            

Total                                                  .4515             4.04            

Uncertainty                                           -.2473            -2.21            

 

 

 

Model = N_ResAll_98 for Year = 2001

Residential Energy Consumption: NEMS - Actual = .55232 (as % = 5.06)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.46056          14.48             .4188             3.83             -.20489           -.093418         

Driver             106.4929          109.0325         -.127             -1.16              .475539           .57847          

Lag                11.38             11.17576          .0686             .63               .333017           .240553         

HDD                4524              4223              .3002             2.75              .385               n/a            

CDD                1215              1245             -.0134            -.12               .048               n/a             

Total                                                  .6472             5.93            

Uncertainty                                           -.0949            -.87             

 

Model = N_ResAll_98 for Year = 2002

Residential Energy Consumption: NEMS - Actual = .34203 (as % = 3.05)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.37254          13.33             .1986             1.77             -.20489           -.093418         

Driver             107.6285          110.472          -.1422            -1.27              .475539           .57847          

Lag                11.47643          10.92411          .1854             1.65              .333017           .240553         

HDD                4524              4294              .2298             2.05              .385               n/a            

CDD                1215              1393             -.0761            -.68               .048               n/a            

Total                                                  .3955             3.52            

Uncertainty                                           -.0535            -.48             

 

Model = N_ResAll_98 for Year = 2003

Residential Energy Consumption: NEMS - Actual = .12474 (as % = 1.08)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.38588          13.98             .3306             2.87             -.20489           -.093418         

Driver             108.7612          112.0135         -.1626            -1.41              .475539           .57847          

Lag                11.55409          11.21206          .1148             1                 .333017           .240553         

HDD                4524              4460              .0636             .55               .385               n/a            

CDD                1215              1290             -.0335            -.29               .048               n/a            

Total                                                  .313              2.72            

Uncertainty                                           -.1883            -1.64            

 

Model = N_ResAll_98 for Year = 2004

Residential Energy Consumption: NEMS - Actual = .30526 (as % = 2.67)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.30915          14.89             .5352             4.68             -.20489           -.093418         

Driver             109.9131          113.6467         -.1867            -1.63              .475539           .57847          

Lag                11.63279          11.50805          .0419             .37               .333017           .240553         

HDD                4524              4290              .2376             2.08              .385               n/a            

CDD                1215              1232             -.0078            -.07               .048               n/a            

Total                                                  .6202             5.43            

Uncertainty                                           -.3149            -2.75             

 

 

 

 

 

 

 

Model = N_ResAll_98 for Year = 2005

Residential Energy Consumption: NEMS - Actual = .10744 (as % = .92)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.31398          16.77             .9241             7.91             -.20489           -.093418         

Driver             111.0799          115.3573         -.2139            -1.83              .475539           .57847          

Lag                11.74047          11.43521          .1025             .88               .333017           .240553         

HDD                4524              4228              .3033             2.6               .385               n/a            

CDD                1215              1444             -.0982            -.84               .048               n/a            

Total                                                  1.0178            8.72            

Uncertainty                                           -.9104            -7.79            

 

Residential Sector Projection % Differences: Model = N_ResAll_99

Year               2000              2001              2002              2003              2004              2005            

NEMS%              .77               3.88              1.82             -.42               .97              -.98             

Adjustments%        3.74              5.8               3.52              2.56              4.92              8.83            

Uncertainty%      -2.98             -1.92             -1.71             -2.99             -3.94             -9.8             

 

Model = N_ResAll_99 for Year = 2000

Residential Energy Consumption: NEMS - Actual = .08649 (as % = .77)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.97353          13.66             .1601             1.43             -.24661           -.093418         

Driver             105.0142          105.189          -.0062            -.06               .344404           .57847          

Lag                11.12915          10.66378          .2101             1.88              .447881           .240553         

HDD                4524              4460              .0616             .55               .385               n/a            

CDD                1215              1229             -.0062            -.06               .048               n/a            

Total                                                  .4194             3.74            

Uncertainty                                           -.3329            -2.98            

 

Model = N_ResAll_99 for Year = 2001

Residential Energy Consumption: NEMS - Actual = .4236 (as % = 3.88)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.957            14.72             .4113             3.77             -.24661           -.093418         

Driver             106.1805          109.0325         -.1011            -.93               .344404           .57847          

Lag                11.26225          11.17576          .039              .36               .447881           .240553         

HDD                4524              4223              .2969             2.72              .385               n/a            

CDD                1215              1245             -.0133            -.12               .048               n/a            

Total                                                  .6328             5.8             

Uncertainty                                           -.2092            -1.92            

 

Model = N_ResAll_99 for Year = 2002

Residential Energy Consumption: NEMS - Actual = .20367 (as % = 1.82)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.85189          13.55             .1629             1.45             -.24661           -.093418          

Driver             107.345           110.472          -.1109            -.99               .344404           .57847          

Lag                11.34771          10.92411          .1912             1.71              .447881           .240553          

HDD                4524              4294              .227              2.02              .385               n/a            

CDD                1215              1393             -.0752            -.67               .048               n/a            

Total                                                  .3951             3.52            

Uncertainty                                           -.1914            -1.71            

 

 

Model = N_ResAll_99 for Year = 2003

Residential Energy Consumption: NEMS - Actual =-.04873 (as % =-.42)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.94609          14.22             .2972             2.58             -.24661           -.093418         

Driver             108.525           112.0135         -.1237            -1.07              .344404           .57847          

Lag                11.41573          11.21206          .0919             .8                .447881           .240553         

HDD                4524              4460              .0627             .54               .385               n/a            

CDD                1215              1290             -.033             -.29               .048               n/a            

Total                                                  .2951             2.56            

Uncertainty                                           -.3438            -2.99            

 

 

Model = N_ResAll_99 for Year = 2004

Residential Energy Consumption: NEMS - Actual = .11147 (as % = .97)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.00933          15.14             .4971             4.35             -.24661           -.093418         

Driver             109.7295          113.6467         -.1389            -1.21              .344404           .57847          

Lag                11.45932          11.50805         -.022             -.19               .447881           .240553         

HDD                4524              4290              .2337             2.04              .385               n/a            

CDD                1215              1232             -.0077            -.07               .048               n/a            

Total                                                  .5622             4.92            

Uncertainty                                           -.4507            -3.94            

 

 

 

 

 

Model = N_ResAll_99 for Year = 2005

Residential Energy Consumption: NEMS - Actual =-.11463 (as % =-.98)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.04349          17.05             .9347             8                -.24661           -.093418         

Driver             110.9643          115.3573         -.1558            -1.33              .344404           .57847          

Lag                11.54668          11.43521          .0503             .43               .447881           .240553         

HDD                4524              4228              .2976             2.55              .385               n/a            

CDD                1215              1444             -.0963            -.82               .048               n/a            

Total                                                  1.0305            8.83            

Uncertainty                                           -1.1451           -9.8              

 

Residential Sector Projection % Differences: Model = N_ResAll_00

Year               2000              2001              2002              2003              2004              2005            

NEMS%             -2.04              .91              -.84              -2.61             -.9               -2.44            

Adjustments%        1.8               4.57              1.16              1.08              4.27              8.22            

Uncertainty%      -3.83             -3.66             -1.99             -3.69             -5.17             -10.67           

 

Model = N_ResAll_00 for Year = 2000

Residential Energy Consumption: NEMS - Actual =-.22746 (as % =-2.04)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.30314          13.81             .1277             1.14             -.277041          -.093418         

Driver             105.3671          105.189           .0124             .11               .685312           .57847          

Lag                10.70899          10.66378          .007              .06               .154078           .240553         

HDD                4524              4460              .0599             .54               .385               n/a            

CDD                1215              1229             -.006             -.05               .048               n/a            

Total                                                  .201              1.8              

Uncertainty                                           -.4285            -3.83            

 

Model = N_ResAll_00 for Year = 2001

Residential Energy Consumption: NEMS - Actual = .099 (as % = .91)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.17413          14.89             .4324             3.96             -.277041          -.093418         

Driver             106.539           109.0325         -.1738            -1.59              .685312           .57847          

Lag                10.9483           11.17576         -.0353            -.32               .154078           .240553         

HDD                4524              4223              .2884             2.64              .385               n/a            

CDD                1215              1245             -.0129            -.12               .048               n/a            

Total                                                  .4987             4.57            

Uncertainty                                           -.3997            -3.66            

 

Model = N_ResAll_00 for Year = 2002

Residential Energy Consumption: NEMS - Actual =-.09372 (as % =-.84)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.06647          13.7              .1597             1.42             -.277041          -.093418         

Driver             107.7027          110.472          -.1931            -1.72              .685312           .57847          

Lag                11.02311          10.92411          .0154             .14               .154078           .240553         

HDD                4524              4294              .2211             1.97              .385               n/a            

CDD                1215              1393             -.0732            -.65               .048               n/a            

Total                                                  .1299             1.16            

Uncertainty                                           -.2236            -1.99            

 

Model = N_ResAll_00 for Year = 2003

Residential Energy Consumption: NEMS - Actual =-.30046 (as % =-2.61)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.06551          14.37             .3287             2.86             -.277041          -.093418         

Driver             108.8805          112.0135         -.2184            -1.9               .685312           .57847          

Lag                11.11834          11.21206         -.0146            -.13               .154078           .240553         

HDD                4524              4460              .0613             .53               .385               n/a            

CDD                1215              1290             -.0323            -.28               .048               n/a            

Total                                                  .1247             1.08            

Uncertainty                                           -.4252            -3.69            

 

Model = N_ResAll_00 for Year = 2004

Residential Energy Consumption: NEMS - Actual =-.10327 (as % =-.9)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.08315          15.31             .5612             4.91             -.277041          -.093418         

Driver             110.0828          113.6467         -.2485            -2.17              .685312           .57847          

Lag                11.20759          11.50805         -.0467            -.41               .154078           .240553         

HDD                4524              4290              .2294             2.01              .385               n/a            

CDD                1215              1232             -.0076            -.07               .048               n/a             

Total                                                  .4878             4.27            

Uncertainty                                           -.5911            -5.17            

 

 

 

 

 

 

 

Model = N_ResAll_00 for Year = 2005

Residential Energy Consumption: NEMS - Actual =-.28533 (as % =-2.44)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.02821          17.24             1.0614            9.08             -.277041          -.093418         

Driver             111.3056          115.3573         -.2825            -2.42              .685312           .57847          

Lag                11.33194          11.43521         -.016             -.14               .154078           .240553         

HDD                4524              4228              .2932             2.51              .385               n/a            

CDD                1215              1444             -.0949            -.81               .048               n/a            

Total                                                  .9612             8.22            

Uncertainty                                           -1.2465           -10.67           

 

Commercial Sector Projection % Differences: Model = N_ComAll_98

Year               2000              2001              2002              2003              2004              2005            

NEMS%             -4.28             -2.97             -3.49             -3.59             -1.48             -2.7             

Adjustments%       4.95              4.7               2.84              2.1               3.18              3.84            

Uncertainty%      -9.23             -7.67             -6.33             -5.69             -4.67             -6.53            

 

Model = N_ComAll_98 for year = 2000

Commercial Energy Consumption: NEMS - Actual =-.348716 (as % =-4.28)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.3309           13.18             .0395             .49              -.063328          -.132454         

Driver             74.89623          68.70575          .364              4.46              .565757           .318224          

Lag                7.722946          7.76739          -.0168            -.21               .374241           .649403         

HDD                4524              4460              .0235             .29               .212               n/a             

CDD                1215              1229             -.0063            -.08               .07                n/a            

Total                                                  .404              4.95            

Uncertainty                                           -.7527            -9.23            

 

 

Model = N_ComAll_98 for year = 2001

Commercial Energy Consumption: NEMS - Actual =-.241118 (as % =-2.97)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.20863          14.43             .1035             1.27             -.063328          -.132454         

Driver             75.71932          70.45488          .3095             3.81              .565757           .318224         

Lag                7.803784          8.1525           -.1315            -1.62              .374241           .649403         

HDD                4524              4223              .1142             1.41              .212               n/a            

CDD                1215              1245             -.0135            -.17               .07                n/a            

Total                                                  .3822             4.7             

Uncertainty                                           -.6233            -7.67      

Model = N_ComAll_98 for year = 2002

Commercial Energy Consumption: NEMS - Actual =-.287438 (as % =-3.49)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.1045           13.38             .0594             .72              -.063328          -.132454         

Driver             76.51044          72.17918          .2547             3.09              .565757           .318224         

Lag                7.880362          8.12148          -.0909            -1.1               .374241           .649403         

HDD                4524              4294              .0875             1.06              .212               n/a            

CDD                1215              1393             -.0765            -.93               .07                n/a            

Total                                                  .2342             2.84             

Uncertainty                                           -.5216            -6.33            

 

Model = N_ComAll_98 for year = 2003

Commercial Energy Consumption: NEMS - Actual =-.299084 (as % =-3.59)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.05031          13.72             .0778             .93              -.063328          -.132454         

Driver             77.33833          73.67056          .2157             2.59              .565757           .318224         

Lag                7.957394          8.244832         -.1084            -1.3               .374241           .649403         

HDD                4524              4460              .0242             .29               .212               n/a            

CDD                1215              1290             -.0338            -.41               .07                n/a            

Total                                                  .1756             2.1             

Uncertainty                                           -.4747            -5.69            

 

Model = N_ComAll_98 for year = 2004

Commercial Energy Consumption: NEMS - Actual =-.122073 (as % =-1.48)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              11.94473          14.24             .1069             1.3              -.063328          -.132454         

Driver             78.19029          75.03583          .1855             2.25              .565757           .318224         

Lag                8.03783           8.336914         -.1128            -1.37              .374241           .649403         

HDD                4524              4290              .0909             1.1               .212               n/a            

CDD                1215              1232             -.0079            -.1                .07                n/a            

Total                                                  .2626             3.18            

Uncertainty                                           -.3847            -4.67            

 

 

 

 

 

 

 

Model = N_ComAll_98 for year = 2005

Commercial Energy Consumption: NEMS - Actual =-.2273 (as % =-2.7)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              11.83853          15.85             .1868             2.22             -.063328          -.132454          

Driver             79.01656          76.20448          .1654             1.96              .565757           .318224         

Lag                8.122841          8.244914         -.046             -.55               .374241           .649403          

HDD                4524              4228              .1169             1.39              .212               n/a            

CDD                1215              1444             -.0998            -1.18              .07                n/a             

Total                                                  .3233             3.84            

Uncertainty                                           -.5506            -6.53            

 

Commercial Sector Projection % Differences: Model = N_ComAll_99

Year               2000              2001              2002              2003              2004              2005            

NEMS%             -2.84             -1.41             -1.82             -2.02              0                -1.31            

Adjustments%      -1.75             -1.09             -3.44             -3.92             -2.58             -.07             

Uncertainty%      -1.09             -.32               1.63              1.9               2.58             -1.24            

 

Model = N_ComAll_99 for year = 2000

Commercial Energy Consumption: NEMS - Actual =-.231366 (as % =-2.84)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.57405          13.4              .104              1.28             -.172156          -.132454         

Driver             62.89052          68.70575         -.2929            -3.59              .397353           .318224         

Lag                7.820432          7.76739           .0287             .35               .536537           .649403         

HDD                4524              4460              .0239             .29               .212               n/a            

CDD                1215              1229             -.0064            -.08               .07                n/a            

Total                                                 -.1427            -1.75            

Uncertainty                                           -.0887            -1.09            

 

Model = N_ComAll_99 for year = 2001

Commercial Energy Consumption: NEMS - Actual =-.114683 (as % =-1.41)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.45059          14.67             .2794             3.44             -.172156          -.132454         

Driver             63.5958           70.45488         -.3455            -4.25              .397353           .318224         

Lag                7.921134          8.1525           -.1252            -1.54              .536537           .649403         

HDD                4524              4223              .116              1.43              .212               n/a            

CDD                1215              1245             -.0137            -.17               .07                n/a            

Total                                                 -.089             -1.09            

Uncertainty                                           -.0257            -.32             

 

Model = N_ComAll_99 for year = 2002

Commercial Energy Consumption: NEMS - Actual =-.149878 (as % =-1.82)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.28535          13.6              .1655             2.01             -.172156          -.132454         

Driver             64.25379          72.17918         -.3992            -4.84              .397353           .318224         

Lag                8.006797          8.12148          -.0621            -.75               .536537           .649403         

HDD                4524              4294              .0891             1.08              .212               n/a            

CDD                1215              1393             -.0778            -.94               .07                n/a            

Total                                                 -.2846            -3.44            

Uncertainty                                            .1347             1.63            

 

Model = N_ComAll_99 for year = 2003

Commercial Energy Consumption: NEMS - Actual =-.168493 (as % =-2.02)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.33296          13.95             .2036             2.44             -.172156          -.132454         

Driver             64.93594          73.67056         -.4399            -5.28              .397353           .318224         

Lag                8.094954          8.244832         -.0811            -.97               .536537           .649403         

HDD                4524              4460              .0246             .3                .212               n/a            

CDD                1215              1290             -.0343            -.41               .07                n/a            

Total                                                 -.3271            -3.92             

Uncertainty                                            .1586             1.9             

 

Model = N_ComAll_99 for year = 2004

Commercial Energy Consumption: NEMS - Actual = .000088 (as % = 0)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.34807          14.48             .2684             3.26             -.172156          -.132454         

Driver             65.61822          75.03583         -.4743            -5.75              .397353           .318224         

Lag                8.168421          8.336914         -.0912            -1.11              .536537           .649403         

HDD                4524              4290              .0923             1.12              .212               n/a            

CDD                1215              1232             -.008             -.1                .07                n/a            

Total                                                 -.2128            -2.58            

Uncertainty                                            .2129             2.58            

 

 

 

 

 

 

 

Model = N_ComAll_99 for year = 2005

Commercial Energy Consumption: NEMS - Actual =-.110758 (as % =-1.31)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.33938          16.12             .476              5.64             -.172156          -.132454         

Driver             66.28476          76.20448         -.4996            -5.92              .397353           .318224         

Lag                8.245002          8.244914          0                 0                 .536537           .649403         

HDD                4524              4228              .1185             1.41              .212               n/a            

CDD                1215              1444             -.1012            -1.2               .07                n/a            

Total                                                 -.0063            -.07             

Uncertainty                                           -.1045            -1.24           

 

Commercial Sector Projection % Differences: Model = N_ComAll_00

Year               2000              2001              2002              2003              2004              2005            

NEMS%             -4.16             -2.41             -2.67             -2.8              -.72              -1.8             

Adjustments%      -1.97             -2.56             -3.39             -3.8              -2.61             -.78             

Uncertainty%      -2.19              .15               .72               .99               1.9              -1.02            

 

 

Model = N_ComAll_00 for year = 2000

Commercial Energy Consumption: NEMS - Actual =-.33897 (as % =-4.16)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              13.08415          13.55             .0281             .35              -.085136          -.132454         

Driver             63.34077          68.70575         -.166             -2.04              .249884           .318224         

Lag                7.710082          7.76739          -.0397            -.49               .686408           .649403         

HDD                4524              4460              .0236             .29               .212               n/a            

CDD                1215              1229             -.0063            -.08               .07                n/a            

Total                                                 -.1603            -1.97            

Uncertainty                                           -.1787            -2.19            

 

Model = N_ComAll_00 for year = 2001

Commercial Energy Consumption: NEMS - Actual =-.195572 (as % =-2.41)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.85606          14.83             .1192             1.47             -.085136          -.132454         

Driver             64.20343          70.45488         -.1935            -2.38              .249884           .318224         

Lag                7.81353           8.1525           -.2346            -2.89              .686408           .649403         

HDD                4524              4223              .1148             1.41              .212               n/a            

CDD                1215              1245             -.0135            -.17               .07                n/a            

Total                                                 -.2076            -2.56            

Uncertainty                                            .012              .15              

Model = N_ComAll_00 for year = 2002

Commercial Energy Consumption: NEMS - Actual =-.219833 (as % =-2.67)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.60261          13.75             .0693             .84              -.085136          -.132454         

Driver             64.93169          72.17918         -.2243            -2.72              .249884           .318224         

Lag                7.925908          8.12148          -.1354            -1.64              .686408           .649403         

HDD                4524              4294              .0883             1.07              .212               n/a            

CDD                1215              1393             -.0772            -.94               .07                n/a            

Total                                                 -.2793            -3.39            

Uncertainty                                            .0595             .72             

 

Model = N_ComAll_00 for year = 2003

Commercial Energy Consumption: NEMS - Actual =-.233694 (as % =-2.8)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.52698          14.1              .095              1.14             -.085136          -.132454         

Driver             65.62161          73.67056         -.2491            -2.99              .249884           .318224          

Lag                8.024999          8.244832         -.1522            -1.83              .686408           .649403         

HDD                4524              4460              .0244             .29               .212               n/a             

CDD                1215              1290             -.034             -.41               .07                n/a            

Total                                                 -.3159            -3.8             

Uncertainty                                            .0822             .99             

 

Model = N_ComAll_00 for year = 2004

Commercial Energy Consumption: NEMS - Actual =-.05913 (as % =-.72)

Source             NEMS              Actual            Impact            Percent           Elasticity        Updated Elas    

Price              12.46017          14.64             .1316             1.6              -.085136          -.132454         

Driver             66.34257          75.03583         -.269             -3.26              .249884           .318224         

Lag                8.10322           8.336914         -.1618            -1.96              .686408           .649403         

HDD                4524              4290              .0916             1.11              .212               n/a            

CDD                1215              1232             -.008             -.1                .07                n/a            

Total                                                 -.2155