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Modeling household energy consumption and adoption of energy efficient technology

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  • Li, Jia
  • Just, Richard E.

Abstract

This study develops a model to study household energy use behavior that can impose common preferences for feasible demand estimation with multiple discrete technology choices and multiple continuous energy consumption uses. The model imposes fixed proportions production and additivity of uses for plausible estimation feasibility while adopting a second-order translog flexible functional form to focus on flexibility in identification of consumer preferences that determine interactions among energy uses and between short-run and long-run choices. Using a unique household-level dataset from California, the model is applied to estimate short-run household demand for electricity and natural gas and the long-run technology choices with respect to clothes washing, water heating, space heating, and clothes drying. The estimation results support commonality of underlying preferences except in one case that is explained by an unavailable variable.

Suggested Citation

  • Li, Jia & Just, Richard E., 2018. "Modeling household energy consumption and adoption of energy efficient technology," Energy Economics, Elsevier, vol. 72(C), pages 404-415.
  • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:404-415
    DOI: 10.1016/j.eneco.2018.04.019
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    More about this item

    Keywords

    Energy modeling; Household energy use; Technology adoption; Energy efficiency; Energy and climate policy;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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