Modeling Household Energy Consumption and Energy-efficient Technology Adoption. Jia Li, Ph.D. U.S. Environmental Protection Agency USAEE Annual Conference October 11 th , 2011. Motivation. Technological change and energy efficiency are important factors of energy and climate change policy
Jia Li, Ph.D.
U.S. Environmental Protection Agency
USAEE Annual Conference
October 11th, 2011
Z= a composite market good,
Ej =energy use j, j = 1,…,J,
θ = household/housing characteristics.
i = technology choice index,
xl(i),j=fuel input associated with technology i,
φij= average energy-efficiency coefficient of technology i
Budget share equations
where μl = disturbance in fuel use decisions
Assumption: εij are identically and independently distributed (i.i.d.) and follow extreme value (EV) type I distributions
Discrete choice probability (logit):