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Modelling useful energy demand system as derived from basic needs in the household sector

Barkhordar, Z. A ; Sharif University of Technology

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  1. Type of Document: Article
  2. DOI: 10.1007/s12053-014-9257-7
  3. Abstract:
  4. Inter-fuel substitution in the household sector depends on whether their target energy use is similar or not. To account for the effect of end-use application on energy demand, the concept of useful energy is utilized in which energy carriers are grouped according to their end-use applications. Useful energy is assumed as a commodity demanded to satisfy needs. Therefore, it should possess certain characteristics in accordance with the nature of basic needs. These characteristics were investigated through a two-level budgeting system with demographic variables indicating rural and urban households of Iran. The model has been applied to estimate the behavioural parameters such as income and price elasticities of useful energy demand. The estimated values of income and own-price elasticity show that all categories of useful energy are necessities with a relatively inelastic demand. Among them, cooling and non-substitutable electricity has the highest income and own-price elasticity, while lighting and water heating are ranked as the most necessary types of useful energy due to their low-income elasticity. In addition, small values of cross price elasticities support the idea that different types of useful energy are almost independent. Therefore, the results confirm that useful energy demands could be considered as basic needs
  5. Keywords:
  6. Demand model ; End-use energy ; Budget control ; Costs ; Elasticity ; Energy management ; Energy utilization ; Basic needs ; Demand modeling ; End-uses ; Residential ; Useful energy ; Heating
  7. Source: Energy Efficiency ; Volume 7, Issue 5 , 2014 , Pages 903-921 ; ISSN: 1570646X
  8. URL: http://link.springer.com/article/10.1007%2Fs12053-014-9257-7