Presentation is loading. Please wait.

Presentation is loading. Please wait.

Handling different heating technologies and zero expenditures in estimation of household energy consumption Bente Halvorsen Statistisk sentralbyrå.

Similar presentations


Presentation on theme: "Handling different heating technologies and zero expenditures in estimation of household energy consumption Bente Halvorsen Statistisk sentralbyrå."— Presentation transcript:

1 Handling different heating technologies and zero expenditures in estimation of household energy consumption Bente Halvorsen Statistisk sentralbyrå

2 Theoretical and empirical challenges Zero expenditures for individual households (micro data) – Do not own heating equipment allowing for the use of all types of fuels – Equipment is available, but not utilized Peak-load substitution Limited price information – Unknown electricity price at the time of consumption – Different units of measurement – Varying energy efficiency of the equipment

3 What do we want to find? Energy elasticities – Own price, cross price, and budget elasticities  Depending on the chosen heating portfolio  Depending on the utilization of the chosen heating portfolio Effects of: – Correcting for zero expenditures – Correcting for peak-load substitution – Limited price information

4 Correcting the estimations Simultaneous Almost Ideal Demand System (AIDS) Zero expenditures – Double hurdle model  Do not own equipment (discrete)  Own equipment – Zero expenditures (discrete) – Positive expenditures (continuous) »Only relevant prices enter the expenditure function Peak-load substitution – Trivariate, bivariate and univariate normal density functions No prior assumptions about homogeneity and symmetry

5 Mean values by heating portfolio

6 Elasticities in the fully corrected model (1 = electricity, 2 = fuel oil, and 3 = firewood)

7 Effects on elasticities of correcting the estimations (1 = electricity, 2 = fuel oil, and 3 = firewood)

8 Conclusions Household energy consumption depends on heating portfolio Correcting for zero consumption – Significant effects on several coefficients – Effects on several elasticities Correcting for peak-load substitution – No significant effects on coefficients in the expenditure functions – Significant correlation coefficients Limited price information – Rejection of symmetry and homogeneity properties

9 The effect of limited price information


Download ppt "Handling different heating technologies and zero expenditures in estimation of household energy consumption Bente Halvorsen Statistisk sentralbyrå."

Similar presentations


Ads by Google