Over the past several years, the Department of Energy (DOE) and its predecessor agencies have initiated an array of policies aimed at limiting domestic consumption of fossil fuels. Several policy initiatives, aimed at residential fossil-based energy conservation, have included residential...

Energy policy analysts (Hausman [1979], Hartman [1984], Houston [1983], Hutton [1980], and Olsen [1984]) increasingly rely on some notion of life-cycle costing for predicting how consumers will choose among alternative energy-using durable-good investments. These techniques have been important...

State-of-the-art residential energy demand models explicitly address consumer choices concerning fuels and fuel-using equipment (Arthur D. Little, Inc., 1981; Cambridge Systematics, Inc., 1981; Hartman, 1979, 1982a, b; Hartman and Wallace, 1982; Hausman, 1979; Hirst and Carney, 1978). However, these residential...