Distributin national HH demand to regions
Reading how national Household Personal Consumption Expenditures (PCE) are disaggregated to the different income classes and to the regions (states, counties)...if based only on income distribution and population (household) data, can't this produce distorted results for urban high population density regions’ gasoline use (due to higher per capita public transportation use), and for very cold or very warm regions’ heating fuel use (Hawaii vs. Alaska for a given income group)?
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Yes. The CES data divides the US geographically into 6 regions. When we ran a statistical analysis on the data, differences between the 6 regions were not significant while differences between the income classes were. I would suspect it would be statistically significant if CES data were divided between urban and rural. Some things balance out eg - power required to heat homes in AK v. cooling homes in FL. Although there are individual cases that will prove otherwise, eg, I understand that Maine is heavily reliant on home fuel oil for heat while the Pacific Northwest is dominantly electric. Some areas don't have bowling alleys so all household demand is imported, when in fact they probably just don't go bowling. If you know of a large deviation from average and it is important to the study, you will need to edit the data.0
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