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This study had two major objectives: (1) assess and compare changes in natural gas consumption between 1987 and 1993 by income group and (2) assess the potential influence of energy policy on observed changes in natural gas consumption over time and across income groups. This analysis used U.S. Department of Energy (DOE) data files and involved both the generation of simple descriptive statistics and the use of multivariate regression analysis. The consumption of natural gas by the groups was studied over a six-year period. The results showed that: (1) natural gas use was substantially higher for the highest income group than for the two lower income groups and (2) natural gas consumption declined for the lowest and middle income quintiles and increased for the highest income quintile between 1987 and 1990; between 1990 and 1993, consumption increased for the lowest and middle income quintile, but remained relatively constant for the highest income quintile. The relative importance of the structural and variable factors in explaining consumption changes between survey periods varies by income group. The analysis provides two major energy policy implications: (1) natural gas intensity has been the highest for the lowest income group, indicating that this group is more vulnerable to sudden changes in demand-indicator variables, in particular weather-related variables, than increase natural gas consumption, and (2) the fall in natural gas intensity between 1987 and 1993 may indicate that energy policy has had some impact on reducing natural gas consumption. 11 refs., 4 figs., 16 tabs

A structural analysis of natural gas consumption by income class from 1987 to 1993