Energy consumption for space heating: A discrete-continuous approach

Energy demand for space heating is estimated using a discrete-continuous ch oice model which focuses on the relationship between the choice of heating equipment and energy consumption. The model is estimated on Norwegian micro data, and the two stages of the model are estimated simultaneously. The ca pital cost and the operating cost of the heating systems are both found to have a significant impact on the choice of heating system. Furthermore, the results show that household characteristics are important variables in res idential energy models. Energy price elasticities and income elasticities a re also estimated.