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A RESIDENTIAL ENERGY MARKET MODEL: AN ECONOMETRIC ANALYSIS *
Author(s) -
Wang YoungDoo,
Tannian Francis X.,
Solano Paul L.
Publication year - 1985
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1985.tb00070.x
Subject(s) - consumption (sociology) , econometric model , economics , energy consumption , energy (signal processing) , econometrics , set (abstract data type) , energy demand , microeconomics , environmental economics , computer science , engineering , social science , statistics , mathematics , sociology , electrical engineering , programming language
This paper develops a multisector residential energy policy model. This model hypothesizes that household energy behavior is affected by conditions in the housing, the mortgage finance, and the energy markets. The relationships encompassed by the model are specified with 32 single and simultaneous equations and tested with quarterly data drawn from behavior in Delaware. After the testing and evaluation of the model for its statistical performance, thereafter, three energy policies are simulated a 5 percent residential energy consumption tax, a set of conventional insulation requirements for all new housing, and a passive solar‐installation requirement for all new housing. These policy choices are evaluated in terms of their impact on energy consumption, prices, demand and size of different types of housing permits, and mortgage financing. Finally, the economic and social implications of these policy impacts are discussed.