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Abstract

This paper examines the factors affecting the quantity of home heating fuel used and compares the willingness of consumers of natural gas (NG) and liquified petroleum gas (LPG) to adjust to very different changes in their heating costs over similar periods of time. LPG households made more and bigger temporary changes than did NG households and were more persistent in maintaining their behavior. LPG households also made structural improvements to the heat resistance of their homes while few NG households did so. Although people can adjust their fuel-use habits, a substantial economic incentive is required to create a significant and sustained response.

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