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Applying models for ordinal logistic regression to the analysis of household electricity consumption classes in Rio de Janeiro, Brazil

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  • Fuks, Mauricio
  • Salazar, Esther
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    Abstract

    This study applies the proportional odds and partial proportional odds models for ordinal logistic regression to analyze household electricity consumption classes. Micro-data from households situated in the state of Rio de Janeiro during 2004 was used to measure the performance of the models in correctly classifying household electricity consumption classes via sociodemographic, electricity usage and dwelling characteristics. The strategy of using binary logistic regressions to test the main hypothesis of the proportional odds model, suggested by Bender and Grouven, was successful in identifying which of the independent variables could be estimated via the proportional odds assumption. Results indicate that the partial proportional odds models is slightly superior to the more restrictive approach. The study includes probabilistic examples to describe how changes in the independent variables affect the probability of a household belonging to specific classes of electricity consumption. Projections using the final model indicated that the approach may be useful for estimating aggregate household electricity consumption.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 30 (2008)
    Issue (Month): 4 (July)
    Pages: 1672-1692

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    Handle: RePEc:eee:eneeco:v:30:y:2008:i:4:p:1672-1692

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    Web page: http://www.elsevier.com/locate/eneco

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    1. Vincent Kang Fu, 1999. "Estimating generalized ordered logit models," Stata Technical Bulletin, StataCorp LP, vol. 8(44).
    2. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March.
    3. Ivy Liu & Alan Agresti, 2005. "The analysis of ordered categorical data: An overview and a survey of recent developments," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 14(1), pages 1-73, June.
    4. Tiwari, Piyush, 2000. "Architectural, Demographic, and Economic Causes of Electricity Consumption in Bombay," Journal of Policy Modeling, Elsevier, vol. 22(1), pages 81-98, January.
    5. Kahn, E. & Sathaye, J. & Robbins, D., 1986. "An engineering-economic approach to estimating the price elasticity of residential electricity demand," Energy Economics, Elsevier, vol. 8(2), pages 118-126, April.
    6. Jung, Tae Yong, 1993. "Ordered logit model for residential electricity demand in Korea," Energy Economics, Elsevier, vol. 15(3), pages 205-209, July.
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    Cited by:
    1. Ozcam, Ahmet & Karadeniz, Esra, 2012. "The Determinants of the Growth Expectations of Turkish Entrepreneurs in the Way up the Entrepreneural Ladder Using Ordinal Logistic Model (OLM)," MPRA Paper 49908, University Library of Munich, Germany.
    2. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2012. "Estimation of elasticity price of electricity with incomplete information," Energy Economics, Elsevier, vol. 34(3), pages 627-633.
    3. Yu, Biying & Zhang, Junyi & Fujiwara, Akimasa, 2011. "Representing in-home and out-of-home energy consumption behavior in Beijing," Energy Policy, Elsevier, vol. 39(7), pages 4168-4177, July.
    4. Goto, Hisanori & Goto, Mika & Sueyoshi, Toshiyuki, 2011. "Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan," Energy Economics, Elsevier, vol. 33(2), pages 195-208, March.

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