A model of individual household temperature demand and energy-related welfare changes using satiety

Document Type

Article

Date of Original Version

1-1-1986

Abstract

A model of the utility-maximizing household is developed in which data on satiety levels for indoor temperature can be used along with budget constraint parameters and actual temperature choices to estimate parameters of the utility function. Using the utility parameters, equivalent variations in income can be estimated to measure welfare effects of policy and price changes that effect home heating. All of these operations can be performed at the individual household level and for any member of a popular class of utility function forms. The required data are easy to obtain, although they typically are not collected in household surveys. © 1986.

Publication Title, e.g., Journal

Energy Economics

Volume

8

Issue

3

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