A Model of Household Heating Demand: Home Production with Satiety and an Endowment

A model of household indoor temperature choice is developed and empirically implemented taking into account that indoor temperature exhibits satiety, that temperature is an output of home production, and that there is a natural endowment of outdoor temperature. The model is applied to home heating choices and the welfare effects of an insulation retrofit requirement.

[1]  M. L. Baughman,et al.  The Effects of Fuel Prices on Residential Appliance Choice in the United States , 1975 .

[2]  J. Hausman.  Exact Consumer's Surplus and Deadweight Loss , 1981 .

[3]  N. Bockstael,et al.  Welfare Measurement in the Household Production Framework , 1983 .

[4]  Jerry A. Hausman,et al.  Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables , 1979 .

[5]  R. Pollak,et al.  Reply: "Pollak and Wachter on the Household Production Approach" , 1977, Journal of Political Economy.

[6]  David L. Kaserman,et al.  HOUSING MARKET CAPITALIZATION OF ENERGY‐SAVING DURABLE GOOD INVESTMENTS , 1983 .

[7]  Yrjö Vartia,et al.  Efficient Methods of Measuring Welfare Change and Compensated Income in Terms of Ordinary Demand Functions , 1983 .

[8]  R. Pollak,et al.  The Relevance of the Household Production Function and Its Implications for the Allocation of Time , 1975, Journal of Political Economy.

[9]  W. Barnett.  Pollak and Wachter on the Household Production Function Approach , 1977, Journal of Political Economy.

[10]  Sherman D. Hanna.  Evaluation of Energy Saving Investments , 1978 .

[11]  Alex Scott,et al.  The economics of house heating , 1980 .

[12]  William Rudelius,et al.  Marketing Energy Conservation to Homeowners: An Action Program from Public Policy Research , 1984 .

[13]  Welfare Evaluation and the Cost-of-Living Index in the Household Production Model , 1978 .

[14]  Welfare Measurement-A Synthesis , 1982 .