Abstract

The extent to which United States consumers have taken lifestyle cutbacks in eleven expenditure areas as a result of higher energy prices is examined. Data are from a general population sample survey of 8,392 households in ten western states, covering approximately 24 percent of all U.S. households. It was found that an index summarizing the extent to which respondents had taken lifestyle cutbacks was somewhat related in a positive direction to making temporary home adjustments to save energy, but was not related to taking permanent home-related energy conservation actions. The findings bring into question whether a market-oriented conservation policy will increase the taking of conservation actions, but also raise a disturbing question about existing tax credit programs.

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