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Non‐Linearities in Electricity Demand and Temperature: Parametric Versus Non‐Parametric Methods[Note 1. The data used in this paper was kindly provided ...]
Author(s) -
Henley Andrew,
Peirson John
Publication year - 1997
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00054
Subject(s) - parametric statistics , econometrics , nonparametric statistics , economics , range (aeronautics) , panel data , sample (material) , semiparametric model , parametric model , electricity , environmental science , mathematics , statistics , thermodynamics , materials science , engineering , physics , electrical engineering , composite material
This paper investigates the relationship between outside air temperature and the residential demand for space heating energy. These non‐linearities are investigated empirically using high frequency panel data for a sample of UK households, and both parametric and non‐parametric methods for identifying non‐linearities are examined. The econometric evidence finds support for important non‐linearities across the range of observed temperatures and points to limitations in the use of parametric functional forms.