LAUSR

Abstract This research explores the temporal and spatial variation of sectoral natural gas demand in the United States. Fixed-effects econometric methods with robust identification approaches are the empirical techniques configured in the study using monthly data between 2001 and 2015. The results reveal the inelastic price responses at state, regional, and national levels across natural gas consumption sectors. The implication is that the efficacy of price based policies can differ in the natural gas consumption sectors across spatial scales. The statistically significant weather impacts in terms of heating degree days (HDD) and cooling degree days (CDD) revealed in this analysis are consistent with the extant energy demand literature, where higher HDD stimulates greater consumption of natural gas in the residential sector while CDD appears to increase natural gas consumption for electricity generation.