In this paper we use a micro approach to model Quebec residential demand for electricity. The model incorporates a joint continuous/discrete decision framework which allows for interrelationships between decisions on electricity-related durable holdings and those on usage. In the spirit of recent studies, which used a continuous/discrete framework, the model parameters are estimated using a two-stage approach. At the first stage the decisions regarding space and water heating systems are modelled with a very flexible Multinomial Probit (MNP) framework. Then, at the second stage, the demand for electricity conditional on the chosen heating system is estimated using ordinary least squares, and a correction is applied in order to eliminate a potential estimation bias. The estimated short-run and long-run price and income elasticities have the correct signs and are rather small, as is expected under such circumstances.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 29 (1996) Issue (Month): 1 (February) Pages: 92-113 Download reference. The following formats are available: HTML,
plain text,
BibTeX,
RIS (EndNote),
ReDIF
Handle: RePEc:cje:issued:v:29:y:1996:i:1:p:92-113
Contact details of provider: Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office CIREQ-C.R.D.E., Université de Montréal C.P. 6128, succursale Centre-ville Montréal, Québec, H3C 3J7, Canada Email: Web page: http://economics.ca/cje/ More information through EDIRC
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)