The development and critical review of annual stock and gross investment data for residential energy-using capital

Abstract

The purpose of this paper is to develop pooled time-series cross-sectional stock and gross investment data for residential energy-using capital by state over the period 1960 to 1974. In the process of doing so, it is necessary to examine theoretical issues and empirical techniques, and to evaluate the accuracy of data sources currently available. One section of the paper is devoted to a careful theoretical and empirical discussion of appliance depreciation rates and their relationship to average appliance lifetimes. Another discusses benchmarking techniques and the conditions under which they are liable to be effective. The remainder of the paper concerns the development and evaluation of the actual data series. Whereas most of the discussion focuses on household appliances, the techniques discussed, evaluated, and utilized should be of wider interest. Similar techniques will allow construction of accurate gross investment data for household heating equipment.