In this paper, we develop a microeconomic approach to deduce greenhouse gas abatement cost curves of the residential heating sector. By accounting for household behavior, we find that welfare-based abatement costs are generally higher than pure technical equipment costs. Our results are based on...

Improvements in the building stock insulation and the replacement of heating systems will have to take place within the next decades in order to lower heat demand and the associated carbon emissions of the building sector. The current study presents an integrated, iterative modelling approach to...

Improvements in the building stock insulation and the replacement of heating systems will have to take place within the next decades in order to lower heat demand and the associated carbon emissions of the building sector. Moreover, continuous investments in heating systems are nec-essary due to...

We derive marginal conditions of optimality (i.e., Euler equations) for a general class of Dynamic Discrete Choice (DDC) structural models. These conditions can be used to estimate structural parameters in these models without having to solve for or approximate value functions. This result...

This paper explores the properties of expected value functions in dynamic discrete choice models. The continuity with respect to state variables and parameters, and the differentiability with respect to state variables are established under fairly general conditions. The differentiability with...

Our goal in this chapter is to explain concretely how to implement simulation methods in a very general class of models that are extremely useful in applied work: dynamic discrete choice models where one has available a panel of multinomial choice histories and partially observed payoffs....

Using results from Convex Analysis, we investigate a novel approach to identification and estimation of discrete-choice models that we call the mass transport approach . We show that the conditional choice probabilities and the choice-specific payoffs in these models are related in the sense of...

This paper extends the Euler Equation (EE) representation of dynamic decision problems to a general class of discrete choice models and shows that the advantages of this approach apply not only to the estimation of structural parameters but also to the solution of the model and the evaluation of...