A nested logit model of energy conservation activity by owners of existing single family dwellings

Abstract

Previous models of residential energy demand have emphasized either (i) short-run continuous adjustments in the utilization of a fixed capital stock or (ii) long-run discrete decisions about the capital embodied in new housing. This paper examines medium-run adjustments to the existing housing stock, focusing on discrete energy conservation “retrofits” such as insulation and storm windows. Individual household data are employed in a two-level nested logit model to estimate a translog indirect utility function. Simulations reveal considerable sensitivity of the demand for retrofits to their own prices, to relative energy prices and to changes in real incomes.

Publication
Review of Economics and Statistics 67(2) 205-211

Google Scholar citations

conservation retrofits non-SP