Quebec Residential Electricity Demand: A Microeconometric Approach.
In this paper we use a micro approach to model Quebec residential demand for electricity. The model incorporates a joint continuous/discrete decision framework which allows for interrelationships between decisions on electricity-related durable holdings and those on usage. In the spirit of recent studies, which used a continuous/discrete framework, the model parameters are estimated using a two-stage approach. At the first stage the decisions regarding space and water heating systems are modelled with a very flexible Multinomial Probit (MNP) framework. Then, at the second stage, the demand for electricity conditional on the chosen heating system is estimated using ordinary least squares, and a correction is applied in order to eliminate a potential estimation bias. The estimated short-run and long-run price and income elasticities have the correct signs and are rather small, as is expected under such circumstances.
Year of publication: |
1996
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Authors: | Bernard, Jean-Thomas ; Bolduc, Denis ; Belanger, Donald |
Published in: |
Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 29.1996, 1, p. 92-113
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Publisher: |
Canadian Economics Association - CEA |
Saved in:
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