State-of-the-art residential energy demand models explicitly address consumer choices concerning fuels and fuel-using equipment (Arthur D. Little, Inc., 1981; Cambridge Systematics, Inc., 1981; Hartman, 1979, 1982a, b; Hartman and Wallace, 1982; Hausman, 1979; Hirst and Carney, 1978). However, these residential models have focused primarily on the measurement of conditional fuel demand and the analysis of fuel choice. One of their weaknesses is the incomplete treatment of technology choice.
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GeorgeGeorge (1982a). “A Note on the Use of Aggregate Data in Individual Choice Models: Discrete Consumer Choice Among Alternative Fuels for Residential Appliances.” Journal of Econometrics 18.
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GeorgeGeorge (1982b). “Consumer Choice and Alternative Fuels and Appliance Technologies: An Analysis of the Effects of Alternative Conservation Strategies.” MIT Energy Laboratory Working Paper No. MIT-EL 82-036WP (June).
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HausmanJerry A. (1979). “Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables.” Bell Journal of Economics10, No. 1 (Spring).