Qualitative choice modeling of energy-conservation decisions: a micro-economic analysis of the determinants of residential space-heating energy demand

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1982

OSTI ID:5753889

Cameron, T A

This study develops an economic model of household decisions to install major conservation measures such as storm windows, attic insulation, and wall insulation. The structural core of the model is the neoclassical economic paradigm of constrained discounted expected utility maximization. Household choices are modeled as being determined by household preferences across space-heating comfort levels and a composite of all other goods and services. These preferences interact with alternative household budget constraints which are determined by the household's conservation decisions. Nested Logit estimation techniques, using the observed discrete choices of a representative sample of households (in owner-occupied, single-family dwellings), are shown to be superior to simple Multinomial Logit estimation. This superiority arises from the importance of correlation among the error terms associated with indirect utility derived from certain subsets of available conservation alternatives.

• OSTI ID: 5753889
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
291000 -- Energy Planning & Policy-- Conservation
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320300* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
DECISION MAKING
DEMAND
ECONOMIC ANALYSIS
ECONOMICS
ENERGY CONSERVATION
ENERGY DEMAND
HEATING
RESIDENTIAL SECTOR
SPACE HEATING