UNIVERSITY OF ILLINOIS LIBRARY AT UR3ANA-CHAIV!PA!GN NOTICE: Return or renew all Library Materials! The Minimum Fee for each Lost Book is $50.00. The person charging this Kifeltrfal tS rqnmnsible for its return to the library from whfch It waSMwthdrawn on or before the Latest Date stamped below. Theft, mutilation, and underlining of books are reasons for discipli- nary action and may result in dismissal from the University. To renew call Telephone Center, 333-8400 UNIVERSITY Qf ...ILLINOIS LIBRARY AT UftBANA-CHAMPAIGN Digitized by the Internet Archive in 2012 with funding from University of Illinois Urbana-Champaign http://archive.org/details/illinoisconsumer78bull Q.Sh 63c .78 Engin, CONFERENCE ROOM ENGINEERING LIBRARV UNIVERSITY OF ILLINOIS UKBANA, ILLINOIS enter for Advanced Computa UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN URBANA, ILLINOIS 61801 Bibliographic data ;heet 1. Report No. UIUC-CAC-DN-73-78 2. Title and Subtitle THE ILLINOIS CONSUMER'S ROLE IN ENERGY CONSERVATION 3. Recipient's Accession No. 5- Report Date June 13, 1973 Author(s) Clark W. Bullard III 8- Performing Organization Rept. No - CAC 78 Performing Organization Name and Address Center for Advanced Computation University of Illinois at Urbana-Champaign Urbana, Illinois 6l801 10. Project/Task/Work Unit No. 11. Contract/Grant No. NSF GI-35179X Sponsoring Organization Name and Address National Science Foundation 1800 G Street Washington, D. C. 20301 13. Type of Report & Period Covered Research 14. Supplementary Notes . Abstracts The purpose of this paper is to examine the role of consumers in energy conservation. Several reasons for conserving energy are discussed. Next, the components of energy demand are examined in an effort to pinpoint those consumer decisions which result in the consumption of energy resources. Finally, several- methods are suggested by which Illinois consumers can save energy, with attention given the potential benefits of doing so. . Key Words and Document Analysis. 17a. Descriptors Energy conservation Energy supply and demand in Illinois Personal energy consumption expenditures State government energy consumption expenditures b. Identifiers /Open-Ended Terms c. COSATI Field/Group '■Availability Statement ^ Q rest riction On distribution. ivailable from National Technical Information Service, Springfield, Virginia 22151 19. Security Class (This Report) UNCLASSIFIED 20. Security Class (This Page UNCLASSIFIED 21. No. of Pages 36 22. Price =!M NTIS-35 (REV. 3-72) USCOMM-DC 14952-P72 Document No. 78 THE ILLINOIS CONSUMER'S ROLE IN ENERGY CONSERVATION by Clark W. Bullard III Center for Advanced Computation University of Illinois Urbana, IL, 61801 June 13, 1973 This work was supported by a grant from the National Science Foundation. f HfiWffilHg UflftUtt ABSTRACT The Illinois contribution to the GNP is examined to determine the energy required to manufacture, deliver, and sell the goods and services which make up the State product. The analysis is based on a method for converting dollar expenditures to total energy requirements. It is shown that more energy is burned in Illinois than is mined, and still more is required to produce the goods and services sold in the Illinois marketplace. Thus, Illinois imports "direct" energy, in the form of oil and gas, and is also a net importer of "indirect" energy, that embodied in goods and services manufactured with energy burned in other states. Energy demands resulting from personal consumption expenditures are analyzed in detail. Specific suggestions are made to help consumers spend their dollars in ways that save energy directly and indirectly. The energy impact of state and local government purchases is also determined, and it is shown how citizens, tnrougn tneir elected representa- tives may act to conserve energy. Three major areas are suggested: provide economic incentives, increase the energy-awareness of consumers, and curtail construction of public facilities which induce wasteful energy use by consumers. Finally, the potential impact of energy conservation on the environment is discussed. It is shown that if each Illinois consumer reduced his energy demand by only 2%, the savings would exceed the output of a hydroelectric facility the size of Glen Canyon Dam. TABLE OF CONTENTS Page INTRODUCTION 1 THE ELEMENTS OF ENERGY DEMAND 3 The Energy Cost of Goods and Services 3 Illinois Energy Demand 5 OPPORTUNITIES FOR ENERGY CONSERVATION 8 Personal Consumption Expenditures . . . 11 State Government Expenditures 15 SUMMARY 18 TECHNICAL APPENDIX v 21 LIST OF FIGURES Figure Pa S e 1. United States Direct Energy Consumption, 19&9 *♦ 2. Energy Production, Consumption, and Demand in Illinois, 1963 (10° Btu/Capita) . / 6 3. 1963 Per Capita Energy Demand (Million Btu) 7 k. 1963 Illinois Energy Demand in Excess of National Average, Compared to Capacity of Glen Canyon Dam (Trillion Btu) 9 5. U. S. Per Capita Energy Demand, 1970 and 1980 (Million Btu) .... 10 6. Energy Demand Due to Illinois Personal Consumption Expenditures, 1963 * 12 7. Energy Demand Due to Illinois State and Local Government Expenditures, 1963 16 LIST OF TABLES Table Pace 1. Dollar Components of the GNP and Associated Energy Demands, Illinois, 1963 11 Al. Components of 1963 Illinois Final Demand (Thousands of $) Total Energy Coefficients (Btu/$) 22,23 A2. U. S. Direct Energy Deliveries to Final Demand, 19&3 25 A3. Illinois Direct and Indirect Energy Demand, 1963 (Million Btu/Capita) . 27 AU. Illinois Energy Demand by Primary Resource Type, 1963 (Million Btu/Capita) 27 A5. Personal Consumption Categories and Input /Output Sectors .... 29 INTRODUCTION The purpose of this paper is to examine the role of consumers in energy- conservation. I will begin by discussing several reasons for conserving energy. Next, the components of energy demand will be examined in an effort to pinpoint those consumer decisions which result in the consumption of energy resources. Finally, I will suggest several methods by which Illinois consumers can save energy, and will call attention to the potential benefits of doing so. Many reasons can be given for conserving energy, depending upon one's point of view. We can view energy conservation as a tool for coping with an impending energy crisis; or we may view it as an ethic in itself, part of a larger concern for conservation and wise use of all natural resources. Both points of view are common today. Since many energy conservation measures (e.g., reducing highway speed limits) can be implemented much more quickly than supplies can be increased (e.g., building the Trans-Alaska pipeline), energy conservation is an effective tool for dealing with the impending fuel shortages. In the longer run, conservation policies may be effective tools for lessening our dependence on foreign energy sources. The payoff of such policies might be larger than we expect, when we consider the recent request by the Defense Department for a new series of aircraft carriers, at one billion dollars apiece, to protect our Atlantic tanker fleet. From the conservationist's point of view, energy conservation is considered to be essential in the long run because of the finite nature of our energy reserves, and because of uncertainties and risks surrounding the development of new energy sources. In the short run, the conservation- ist shares the concern of the general public about the adverse environmental impacts associated with virtually every phase of energy development, distribution and consumption. Conserving energy is therefore seen as a direct method for reducing environmental damage resulting from strip mining and oil spills at one end, to air pollution and radioactive waste at the other. Whatever one's reasons for conserving energy, much needs to be done before effective and equitable energy saving policies are developed and implemented. What is needed first is a closer examination of the components of energy demand. THE ELEMENTS OF ENERGY DEMAND It is customary to present energy demand statistics in a way which identifies the sector of the economy where the energy is consumed (Fig. l). It would appear, therefore, that the individual consumer has direct control over only about one-third of the total U. S. energy demand, for that is the portion accounted for by residential demands and fuel for private automobiles. Similarly, it might appear that commerce and industry are responsible for the bulk of the energy consumption, and there- fore should assume primary responsibility for conservation. While these observations may be correct, the. fact remains that individual consumers are responsible not only for their own direct consumption of energy, but also for the energy consumed by commerce and industry to provide them with the goods and services they demand. The Energy Cost of Goods and Services Recent research by Herendeen has made it possible to determine the energy required, directly and indirectly, to manufacture, transport and deliver the goods and services which make up our gross national product. The method is an extension of the standard input/output analysis of the U. S. economy, and therefore depends on data from the Census Bureau and 3 other sources. The latest data available are for 1963, but they never- theless provide valuable insight into the components of energy demand. The results of the analysis are a set of coefficients (Btu per dollar) for 362 sectors of the economy. These coefficients represent the "indirect" energy embodied in products , the energy consumed by commerce and industry to make, transport, and sell the products. For items which contain energy (e.g., coal, oil, gas, electricity) their "direct" energy content is added to the indirect to give the total energy coefficient. Multiplying these co- efficients by dollar cost of an item gives its total energy content. TOTAL: 63.8 x 10 15 Btu FIGURE 1. UNITED STATES DIRECT ENERGY CONSUMPTION, 1969 To determine Illinois' energy demand, we need an estimate of the GNP for Illinois in 1963. An estimate is available for a somewhat more coarse 82 sector disaggregation of the GNP. In this paper, the coefficients from Ref. 1 were aggregated to 82 sectors, weighted by the 362 sector national final demand. (For details of these and other calculations, the reader is referred to the Technical Appendix.) Illinois Energy Demand Using the Illinois total final demand for 1963, and converting to energy using the 82 coefficients obtained above, a direct and indirect energy demand of 281 million Btu per capita was obtained. In Fig. 2 this is compared with the energy mined in Illinois and the energy consumed (burned) in 1963. It can be seen that Illinois was a net importer of direct energy, burning 244 million Btu per capita while mining only 159 million. In addition, it appears that sales in the Illinois marketplace resulted in a demand for more energy 8—10 than was burned in the state. Thus Illinois was a net importer of in- direct energy, as well as direct energy. Put another way, Illinois enjoyed the benefits of high energy use, without carrying a proportionate share of the adverse environmental effects of mining and burning that amount of energy. Fig. 3 compares the direct and indirect per capita energy consumption in Illinois with the national average. It shows that the Illinois energy demand was 10p higher, with the difference split almost evenly between direct and indirect energy. The increased direct energy might be attributed to the fact that most of Illinois population is north of the national population centroid, thereby requiring more space heating energy. The higher indirect demands may reflect the fact that the Illinois per capita GNP was higher than the national average in 1963. I Hydro and Nuclear I •:•:•:•!•: 0il and Gas ?- : .- |j Coal 159 trVVr^ Jiiii 2kk > • • « 'AW:! (•;•:•:•:•: MINED BURNED 281 ! : : : : : : :v • • • • ■ • • • • • i Ppi DEMANDED FIGURE 2. ENERGY PRODUCTION, ^CONSUMPTION, AND DEMAND IN ILLINOIS, 1963 (10 BTU/CAPITA) Indirect Direct 256 281 NATIONAL AVERAGE ILLINOIS FIGURE 3. 1963 PER CAPITA ENERGY DEMAND (MILLION BTU) 8 OPPORTUNITIES FOR ENERGY CONSERVATION Before examining the Illinois energy demand more carefully and suggesting specific methods for conservation, it would be interesting to speculate on the potential payoff of even modest energy conservation measures. As ve have noted above, Illinois per capita energy demand exceeded the national average by approximately 10$, or about 25 million Btu per person per year. This excess, when expressed in Btu, is a difficult concept to grasp. Fig. k attempts to relate this excess con- sumption to a well-known energy/environment controversy in 1963. The controversy centered around the decision to flood. Glen Canyon and Rainbow Bridge National Monument on the Colorado River by constructing a hydro- electric dam. Fig. h compares the annual primary energy production of Glen Canyon dam with the amount of energy by which Illinois consumption exceeded the national average in 1963. If Illinois energy demand at that time were reduced by only 1.7$ (i.e., if it had been 276 million Btu/capita rather than 28l), the national energy demand would have been reduced by the amount of one Glen Canyon dam. This gives some indication of the far- reaching impact that could result from even modest energy savings on the part of the citizens of Just one state. Today perhaps the best known controversy involving energy and the environment is concerned with the proposed Trans-Alaska pipeline. The pipe- line and its associated highway would bisect the largest remaining wilder- ness area on the American frontier. It is expected to provide 2 million barrels of oil per day by 1980, or about 18 million Btu/person per year. Fig. 5 compares the U. S. per capita energy demand in 1970 with the projected 1980 demand. It can be seen that a 25% increase in per capita energy demand *The primary energy production of a hydroelectric facility is defined as the amount of fossil fuel which would be needed to produce an equivalent amount of electricity. 255 SI •:•:•:•: t • • • • i • • • • ■ rv.v ILLINOIS EXCESS ENERGY DEMAND, 1963 ANNUAL ENERGY PRODUCTION, GLEN CANYON DAM FIGURE 1*. 1963 ILLINOIS ENERGY DEMAND IN EXCESS OF NATIONAL AVERAGE, COMPARED TO CAPACITY OF GLEN CANYON DAM (TRILLION BTU) 10 kUB -'fP^l TO BE SUPPLIED BY /' W3k J TRANS -ALASKA PIPELINE ' / / / / / w.v • • « • •"•*•• :•:•:•:•: 331 y f :•:•:•:•: ••••••••i Wtf . i « • * * i • • • • . • • • • i • • • • i xx-x :•:•:•:•: i*: ,•.•.♦.•.1 • ••••) • • • • * • • » « • « • • • t'XvH X'I'Xt • • • • « • •«*-• • • • • m » « • • • • • • • « i • • • «J ,•.•.•.••■* • > . . . . .*»**•. *.^ :•:•:•:•: .•••.•••.i .. .v.v.j 197 D, AC TUAL 198( ) PRO, TECTED* FIGURE 5. U. S. PER CAPITA ENERGY DEMAND, 1970 AND 1980. (MILLION BTU) "Based on a 1980 population of 229 million. 11 is expected. 2 If instead it increased only 3®%, the I98O energy needs would be less than the predicted needs by the amount the Trans-Alaska pipeline would supply. Personal Consumption Expenditures This is the area containing the most opportunities for energy conserva- tion by individuals. Table 1 shows that personal consumption expenditures (PCE) accounted for nearly 70% of Illinois ' per capita energy demand in 1963 • In Fig. 6 the energy demand resulting from all 82 types of expenditures has been aggregated to 18 categories to provide a better picture of the ways Illinois consumers demand energy, directly and indirectly. As might have been expected, purchases of direct forms of energy head the list. Keep in mind though that the figures' include the heat wasted at power plants , transmission losses, and refining energies. Food and drugs rank third, perhaps surprising until one considers the amount of energy expended processing ana packaging most of the foods we buy. These three categories account for two-thirds of the total PCE energy. Two types of "hidden" costs are shown explicitly in Table 1. Wholesale and retail trade energy, including that required to heat, air condition and illuminate stores and warehouses, as well as the energy required MILLIONS TRILLIONS PERC ENT OF CATEGORY OF DOLLARS OF BTU ENERGY DEMAND Personal Consumption Expenditures 2230U 1966 69 Gross Private Capital Formation 1*1*97 285 10 Net Inventory Change U35 1*2 1 Gross Foreign Exports 211*2 292 10 State & Local Govt. Expenditures 3097 131 5 Federal Government Expenditures 2315 11*8 5 TABLE 1. DOLLAR COMPONENTS OF THE GNP AND ASSOCIATED ENERGY DEMANDS, ILLINOIS, 1963 12 k% \MOTOR VEH. & REPAIR MEDICAL & EDUC. CLOTHING TRANSPORTATION INSURANCE & FINANC. REAL ESTATE, & REN' I /HOTELS & MISC. SERVI / .__.. ,* APPLIANCES & ELECTRONI PLASTICS & RUBBER , 1% PAPER, 1% FURNITURE, 1% PHONE & MISC, 1% TOTAL: 1,966 TRILLION BTU FIGURE 6. ENERGY DEMAND DUE TO ILLINOIS PERSONAL CONSUMPTION EXPENDITURES, 1963. 13 to manufacture items needed to operate and maintain these establishments , account for Q% of the individual consumer's energy demand. The other hidden cost, the transportation energy required to deliver goods from the factory to our. homes, accounts for 3% (This is an overestimate because it includes all purchases of passenger and freight transport by individuals). Other major items include motor vehicle manufacture and repair (U%) , medical and educational expenses (3#)> and clothing (3$). It might first appear surprising that the purchase of items quite energy intensive in themselves (glass and metal products, plastics, appliances, etc.)account for a relatively small portion of an individual's total energy budget. This is because such a small portion of the individual's dollar expenditures are allocated to these products. One wonders hov those per- centages might change as we become more affluent and spend more on such luxuries. Within each of the categories listed, there are many opportunities for individual consumers to consume less energy. The most obvious is in the area of home space heating. It is well known that heating by direct fuel use is roughly twice as energy efficient as heating electrically. This is due to the immense quantities of heat wasted at electric power plants . Besides selecting a particular type of furnace, the consumer may also choose to insulate his home. It has been determined that the owner of a gas heated home could realize energy savings of more than k0% at no economic penalty. The owner of an electrically heated home could save the same amount of energy while reducing his heating costs by almost one-third. The second area in which significant energy savings could be realized is gasoline consumption. There are at least three different ways in which consumers could act to save gasoline. The first would be to use 1U their automobiles less often, relying more on mass transit, bicycling, and walking. The second would be to buy smaller, more efficient auto- mobiles , foregoing such energy consuming extras as air conditioning and automatic transmissions. The third would be to operate existing vehicles in a more efficient manner, including more frequent tune-ups , driving slower, and joining car pools. In the area of food purchases, consumption of over-packaged, over- processed foods could be reduced. An example would be purchasing beverages in refillable, rather than throwaway containers. The energy savings result- lU ing from a complete switch to returnables has been estimated by Hannon at 15 billion kwh annually, the equivalent of the output of more than three Glen Canyon dams. More detailed research on other consumer alternatives is underway at the University of Illinois. Soon estimates of the energy cost of frozen vs. fresh vs. canned foods, cloth vs. paper towels, automatic vs. manual dishwashing, etc. will be available. But in the meantime, consumers must develop an awareness of the energy cost of the things they buy. It will be necessary for consumers to look beyond the supermarket or the retail store and consider the total energy cost of goods and services. One does not need to be an expert to realize that it takes more energy to mine ore and manufacture a beverage can than it takes to wash and refill a bottle that can be reused many times. Further energy savings can result from more substantial lifestyle changes such as hanging clothes out to dry instead of using a dryer, replacing the Sunday drive with a long walk or a bicycle trip, living in a smaller home , etc . 15 S tate Government Expend itur es Another way in which Illinois consumers can conserve energy is to act through their elected representatives. Fig. 7 shows the contribution to Illinois energy demand made by State and local government purchases. It can be seen that the largest part of the energy budget is devoted to construction and maintenance operations. While the energy involved is only a few percent of Illinois* total energy demand, the nature of the facilities under construction can have a far-reaching impact on future personal consumption of energy. Let us examine the implications of the State of Illinois construction budget. Millions of dollars are being spent on highways and airports to promote auto and air travel, the two most energy intensive forms of transportation known. It may be time to re-evaluate the role of State government in rail transportation. The State is constructing buildings with windows that do not open; a breath of fresh air may help in more ways than one. Reservoirs are being built in downstate Illinois for the expressed purpose of inducing Chicagoans to drive and visit them ; bringing the parks to the people might be a better idea. These examples illustrate the possibilities for consumers , through their government , to play a larger role in energy conservation. Energy conservation must find its way into comprehensive land use planning. Just as an architect can design a building to minimize its operating energies, so may an urban planner design a city to conserve transportation, heating and other energies. It may be time to reinterpret the "public interest" in the administra- tion of the Illinois Public Utilities Act. The rate structures, as they now exist, do not provide adequate incentives for conserving energy; and 16 NEW CONSTRUCTION AND MAINTENANCE TRANSPORTATION CHEMICALS MOTOR VEHICLES COAL REFINED PETROLEUM PRODUCTS TOTAL: 131 TRILLION BTU FIGURE T. ENERGY DEMAND DUE TO ILLINOIS STATE AND LOCAL GOVERNMENT EXPENDITURES, 1963. 17 it is in the public interest to conserve energy. Additional incentives might include an energy tax or a tax on the sale of gas-guzzling vehicles. The State has a role to play in public education and consumer awareness, and there is much room for increasing the energy-awareness of consumers. Appliance labeling and other measures might be implemented to help consumers help themselves. 18 SUMMARY There are many reasons for conserving energy, and there are many ways to conserve energy. In fact, there are so many ways that it seems that no single action "by any one individual could have a significant im- pact. This is the crux of the problem, and it must be solved in two ways. First, each consumer must adopt not one, but many different energy conservation practices. I have emphasized that decisions to consume energy are made by each and every person many times per day. Second, many or all consumers must act to save energy. Together, the citizens of Illinois can conserve significant amounts if each does his small part . It is difficult to encourage consumers to conserve energy when, in some cases, there is an economic penalty for doing so. Through their government, consumers can act to provide economic incentives for using mass transit, for insulating homes, and for conserving energy at home. Finally, they can request from their government the information required to make energy conservation a factor in their everyday decisions. 19 REFERENCES L. Associated Universities, Inc., Reference Energy Systems and Resource Date for Use in the Assessment of Energy Technologies , Upton, New York, April, 1972. 2. Herendeen, R. A., An Energy Input-Output Matrix for the United States , CAC Document No. 69, Center for Advanced Computation, University of Illinois, Urbana, Illinois, March k y 1973. 3. U. S. Department of Commerce, Office of Business Economics. Input - Output Structure of the U. S. Economy-1963 , Vol. 1-3, Washington, D. C. , 1969. *. Polenske, K. R. a et al. , State Estimates of the Gross National Product 19^7, 1938, 1963 , D. C. Heath and Co., Lexington, Mass., 1972. >. Major, R., Associate Mineral Economist, Illinois State Geologist Survey. Personal Communi cation, April 17, 1973. 5. U. S. Dept. of Interior, Minerals Yearbook , Vol. Ill Area Reports: Domestic, Washington, D. C. , 1963. r. Sargent, C, Commonwealth Edison, Chicago, Illinois, Personal communication, April 17 , 1973. , 5. American Gas Association, Gas Facts, 196U. ). Edison Electric Institute, Edison Electric Institute Statistical Year Book of the Electric Utility Industry for 1963 , New York, September 196k. ). American Petroleum Institute, Petroleum Facts and Figures , Washington, D. C, 1971. Federal Power Commission, Hydroelectric Power Resources of the United States, January 1, 196U , Washington, D. C. , November, I96I+. 20 12. National Petroleum Council, U. S. Energy Outlook — An I ni tial Appraisal 19T1-1983 , Vol. 1, 1971, Washington, D. C. 13. Moyers, J. C, The Value of Thermal Insulation i n R esi denti al Co ns truction^ Economics and the Conservation of Energy , Oak Ridge National Laboratory, Oak Ridge, Tennessee, December 1971. Ik. Hannon, B. M. , System Energy and Recycling: A Study of t he Beverage Industry , CAC Document No. 23, Center for Advanced Computation, University of Illinois, Urbana, Illinois, January 5, 1972, rev. March 17, 1973. 15. Hirst, E. , Energy Consumption for Transportation in the U. S. , 0RNL- NSF Environmental Report 15 , Oak Ridge National Laboratory , Oak Ridge , Tennessee, November 1971. 16. Regal, Ms. J., U. S. Census Bureau, Chicago, Illinois, Personal communication, April 17, 1973 (from Population Estimates, P-25 , U. S. Census Bureau). 21 TECHNICAL APPENDIX I. Energy Demand Statistics The data for Fig. 1 were taken from Ref.l, Table II-3. In that table, electric utility waste heat and natural gas field use were treated as separate demand sectors. I prorated these quantities over electric and natural gas demands by the other sectors. II. Energy Coefficients Indirect energy coefficients, E, for the 362 sector (k digit) economy were obtained from Ref. 2. Total final demands, Y, were obtained from Ref. 3. To aggregate N sectors, the following formula was used: J . \ E. Y. E" 1=1 1 i J N 2 Y. i=l x where E. is the energy content (Btu/$ producers' price) of the output from the new aggregated sector j . The components of GNP, in producers' prices, and the corresponding indirect energy coefficients are listed in Table Al. Herendeen's definition of indirect energy for energy products does not include waste heat and refining energy; he included that as direct energy. I consider it indirect, and correct his indirect coefficients for the energy sectors below. 22 _j >- ►- «i , "-'«l'«-'r , -00\0O > «00C( > .-« h f0 *M «— • «— < r^«\jtn«O«»i>i-«* - i/'*0>irt h OJ H h h »■• _» -J c < o. Z r- Z « O •- X <\i m m j- h ^ ec «j v «jj>mocfs.or4-oiriirm^o00 H «C «*• f op Mn*^i7 o rt >c c a ^ o coo—'^ffi r- h «\i in o \ n m n - imo H «M ~> fl IT ■-• w* _j z r>- oc y — UJZD o oc z UJ IU UJ U. > 0. 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Sales were $519.8 million, giving a total of 2128 trillion Btu. No crude oil and gas was sold to final demand (Ref. 2). From Ref. 2, the price of refined petroleum products to final demand was 1.06 million Btu/$. Sales were $10085 million (Ref. 3), giving a total of 10690 trillion Btu. Also from Ref. 2, 9l+9,800 Btu crude were required indirectly for every dollars worth. of refined delivered to final demand; multiplying we obtain 9579 trillion Btu. Similarly, 38U2 trillion Btu crude are allocated to final demand for natural gas, because 9^2,700 Btu per dollars' worth of gas were required. Final demand for electricity required 855 trillion Btu at 120,970 Btu/$. These latter numbers will be used below to modify the indirect coefficients for these secondary energy types. For electricity, lOlU trillion Btu were delivered directly at an average price of 1*13,500 Btu/$. The natural gas price was 992,500 Btu/$, and sales were $3991 million, for a direct energy value of 39&1 trillion Btu. Gas was indirectly required for electricity sales at 101,700 Btu/$, for a total of 7l8 trillion Btu. Adding the numbers obtained above, we get the total direct energy delivered to final demand, 17993 trillion Btu. Next the indirect energy associated with energy processing must be determined from the above information. To do this, we seek only the primary component, since we would double-count if we added the indirect crude oil and gas required for electricity to the processed natural gas required. From Ref. we have the equation: Primary Energy = Coal + Crude + .59^8 Electric 2i> and use it to obtain the net primary energy from the amounts of coal, crude, and electricity indirectly allocated to final demand. The factor .59^8 gives the hydro and nuclear component of electricity, converted to fossil fuel equivalent. Using this equation, we obtain the following indirect energies (trillion Btu) associated with sales to final demand. Electricity = 1788 + 855 + -59^8 X lOlU = 2633 Gas Utilities = 381+2 Refined Petroleum = 9579 Subtracting the direct energy content of the deliveries to final demand, we obtain net energies of 2222, -79, and -1112 trillion Btu, respectively. The electricity is large, due to the waste heat at power plants. Gas and refined petroleum are negative, because imports of refined exceeded energy consumed domestically to refine oil. Table A2 summarizes the results. Coal Direct Energy to Final Demand Adjustment to Indirect 10 12 Btu 2128 10 Btu/capita 11.25 12 10 Btu 6 10 Btu Crude RPP 10690 56.50 -1112 -5.88 Electricity 1.01U 5.35 2222 11.77 Gas 3961 20. 9 1 * -79 -.U2 Total 17793 9^.0U 1031 5.1*7 TABLE A2. U.S. Direct' Energy Deliveries to Final Demand, 1963 IV. Indirect Energy to Final Demand, U.S. This was obtained from the energy coefficients, E . , and the final demand Y. using the equation 82. l E Y 6 Per Capita Indirect Energy = ,j=l 3 J = 157 X 10 Btu/capita P where P = 189,197,000 was the U.S. population in 1963. Making the above adjustments for energy consumed indirectly to produce energy, we get a total per capita energy demand of 256 million Btu. l62 millior were consumed indirectly, 9^ million directly. V. Illinois Direct and Indirect Energy Demand, 1963 The analyses of III and IV were repeated for the six components of the Illinois contribution to GNP. Data on direct energy deliveries to final demand were available for 5 9 electricity and gas. ' For electricity, residential sales (kwh converted to Btu at 3^-13 Btu/kwh) were assigned to personal consumption. Street lighting was assigned to state and local governments, and "Other" was split between stati and federal governments proportional to their national total purchases of electricity from Ref. 3. For natural gas, the same method was used. Data were not. available for coal, so Illinois dollar sales were converted . to Btu's using the national average price from Ref. 2. Similarly, refined petroleum deliveries to final demand were not available for Illinois, so the national average (per capita) was used. This seemed reasonable because per capita gasoline consumption (Btu) was 3% lower than the national average. Dollar sales of refined petroleum products in Illinois were f% higher than average. Also from Ref. 10 we see that Illinois gasoline prices were about average, and fuel oil slightly higher than average. Since 27 these factors appear to compensate the national average figure was used for Illinois. The need for better data is obvious. Tables A3 and Ak summarize the Illinois direct and indirect energy demands. Per capita figures are based on a population of 10,182,000 in 1963. 16 Direct Indirect Total Personal Consumption 109. 6k 83.1*3 193.07 Gross Private Capital Formation 27-95 27.95 Net Inventory Charge 3.27 .90 4.17 Gross Foreign Exports 15. 0U 13.62 28.66 State and Local Government Expenditures 10.08 2.80 12.88 Federal Government Expenditures 9.13 5.28 14.41 To"cal 175-1 106.03 281.14 i TABLE A3. Illinois Direct and Indirect Energy Demand, 1963 (million Btu/capita) Direct Indirect Total Coal 16.83 53.6k 73. 47 Crude Oil & Gas 88.37 108.86 197.23 Hydro & Nuclear .82 9.66 10.48 TABLE Ak . Illinois Energy Demand by Primary Resource Type, 1963 (million Btu/capita) 28 VI. Energy Mined in Illinois, 19^3 From the Minerals Yearbook, we find Illinois coal production was 51,736,316 tons. This was converted to Btu's using the average Btu content of Illinois coal of 22 million Btu/ton (Ref. 2). Crude petroleum production of 73,783,000 bbl. was converted at 5.8 million Btu/bbl. Natural gas production of 9^+59 mcf was converted at 1035 Btu/cubic foot. Natural gasoline and LP gas production of 352,217,000 gal. was converted at 97,857 Btu/gal. Gross hydro production of 176 million kwh was obtained from Ref. 9 and converted at the 19&3 average heat rate of 10,5^+8 Btu/kwh. Gross nuclear electric production at Commonwealth Edison's nuclear plant •7 was 989»720,000 kwh and was multiplied by the same heat rate. It was the only operating nuclear plant in Illinois in 1963. VII. Energy Burned in Illinois, 1963 rrru,-.™^ ■*»■: ~,.-v .«.-. ,•,„.*.-, ,^v 4- «■?•»»-. J -ev~~~ v-» "Q-i — —J- »*-.* — — a„. 4-4.- **.: — -~._n Economist with the Illinois Geological Survey, The figures are from preliminary worksheets and may be subject to revision, but are considered to be the best presently available. They are, in quadrillion Btu's: Coal-859.89 5 Natural Gas-726.25, Oil-888.8^, Hydropower-1.86, and Nuclear-lO.Ul*. The gross nuclear production figure was obtained from Ref. 7. VIII. Illinois Personal Consumption Expenditures In Fig. 6, the 82 input /output sectors were aggregated into 18 more recognizable ones. Table A5 shows the correspondence. 29 CATEGORY Electricity, Gas & Water 68 Gasoline & Fuel Oil 31 Coal 5-10 Food & Drugs 1-1*, 1U, 15, 29 Wholesale & Retail Trade 69 Motor Vehicle & Repair 59-61, 75 . Medical & Education 62, 63, 77 Clothing 16-19, 31* Transportation 65 Insurance & Finance 70 Real Estate & Rental 71 Hotel & Misc. Services 7? Glass & Metal 13, 35-53, 6U Appliances & Electronics 5U-58 Plastics & Rubber 27, 28, 30, 32 Paper 2U-26 Furniture 22, 23 Phone & Misc. 20, 21, 66, 76 TABLE A5 . PERSONAL CONSUMPTION CATEGORIES AND INPUT/OUTPUT SECTORS