BOX 4-1

Definition of Residential, Commercial, and Industrial Sectors

Residential sector: An energy-consuming sector that consists of living quarters for private households. Common uses of energy associated with this sector include space heating, water heating, air conditioning, lighting, refrigeration, cooking, and running a variety of other appliances. The residential sector excludes institutional living quarters. NOTE: Various programs of the U.S. Energy Information Administration differ in sectoral coverage.


Commercial sector: An energy-consuming sector that consists of service-providing facilities and equipment of: businesses; federal, state, and local governments; and other private and public organizations, such as religious, social, or fraternal groups. The commercial sector includes institutional living quarters. It also includes sewage treatment facilities. Common uses of energy associated with this sector include space heating, water heating, air conditioning, lighting, refrigeration, cooking, and running a wide variety of other equipment. NOTE: This sector includes generators that produce electricity and useful thermal output primarily to support the activities of the above-mentioned commercial establishments.


Industrial sector: An energy-consuming sector that consists of all facilities and equipment used for producing, processing, or assembling goods. The industrial sector encompasses the following types of activity: manufacturing (NAICS codes 31-33); agriculture, forestry, fishing, and hunting (NAICS code 11); mining, including oil and gas extraction (NAICS code 21); and construction (NAICS code 23). Overall energy use in this sector is largely for process heat and cooling and powering machinery, with lesser amounts used for facility heating, air conditioning, and lighting. Fossil fuels are also used as raw material inputs to manufactured products. NOTE: This sector includes generators that produce electricity and useful thermal output primarily to support the above-mentioned industrial activities.


SOURCE: Glossary accessed at the Energy Information Administration (EIA) Web site http://www.eia.doe.gov/.

major fuel used for heat in buildings. However, buildings also consumed about 5% of the 39.7 quadrillion British thermal units (quads) of petroleum used in 2008; industry consumed about 25%. Industrial consumption of petroleum includes the petroleum refining industry, which in turn provides 70% of petroleum used as fuel in transportation.

Approximately 20% of total energy consumed in the United States is attributed to nonelectric use in the industrial sector (for both heating and feedstock); about 10% is attributed to nonelectric use in commercial and residential buildings. Building-sector energy is predominantly used for heating. The industrial and building sectors are also the consumers of almost all electricity generation—about 40% of the U.S. primary energy usage. Damages associated with electricity production were evaluated in Chapter 2.



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