Modeling the residential demand for energy

Thesis/Dissertation · Sat Jan 01 04:00:00 EST 1983

OSTI ID:5657898

Kirby, S N

Demand for energy is derived from the demand for services that appliances and energy together provide. This raises a number of serious econometric issues when estimating energy-demand functions: delineation of short-run and long-run household responses, specification of the price variable and in particular, the assumption that the model is recursive, or in other words, that the appliance choice equation and the energy consumption equation are uncorrelated. The dissertation utilizes a structural model of energy use whose theoretical underpinnings derive from the conditional logit model and an extension of that model to the joint-discrete/continuous case by Dubin and McFadden (1980). It uses the 1978 to 1979 National Interim Energy Comsumption Survey. Three appliance portfolio choices are analyzed; choice of water and space heating and central air-conditioning; choice of room air conditioners; and choice of clothes dryers, either as multinomial logit or binary probit choices. Results varied widely across the appliance choice considered; use of Hausman's test led to acceptance of the null hypothesis of orthogonality in some cases but not in others. Demand for electricity and natural gas tended to be price inelastic; however, estimated own-price effects differed considerably when disaggregated by appliance categories and across methods of estimation.

• OSTI ID: 5657898
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101* -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
APPLIANCES
DEMAND
ECONOMIC ANALYSIS
ECONOMICS
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY MODELS
HOUSEHOLDS
RESIDENTIAL SECTOR