Fuel choice and the demand for natural gas in Western European households
Working paper
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http://hdl.handle.net/11250/179921Utgivelsesdato
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- Discussion Papers [1002]
Sammendrag
The paper presents an econometric model for analysing natural gas demand for
space heating in the residential sector in Weste rn Europe. A discrete-continuous
• dynamic choice model is specified. Households' decisions on energy consumption are viewed as carried out in two steps: In the first step they choose between a limited
number of fuel systems. Given this choice a decision is made on how intensively the
energy equipment should be utilised.
The model is estimated from data on energy use and dwelling stock in seven European
countries, organised in a database at Lawrence Berkeley Laboratory, Berkeley,
USA. The results yield rather reasonable estimates on price and income elasticities
of gas demand, but the effect on demand from conversions are found to be rather
moderate.