Applied

Recent Modelling Approaches in Applied Energy Economics by Olav Bjerkholt, Eystein Gjelsvik, Øystein Olsen (auth.),

By Olav Bjerkholt, Eystein Gjelsvik, Øystein Olsen (auth.), Olav Bjerkholt, Øystein Olsen, Jon Vislie (eds.)

construction. certainly, we're open to feedback from all readers of, and members to, the sequence concerning its procedure and content material. ultimately, i want to thank all those that have helped the release of this sequence. The encouraging reaction obtained from authors who've contributed the drawing close volumes and from the subscribers to the sequence has indicated the necessity for this type of ebook. Homa Motamen-Scobi London December 1987 Preface In 1990 either OPEC and the OECD will rejoice their 30th anntvers­ aries. OPEC used to be based - really neglected - by way of oil-producing nations nonetheless suffering to realize keep an eye on over nationwide petroleum assets. destiny participants have been nonetheless below colonial rule. the major objective of the recent association - years earlier than it was once capable of make metropolitan newspaper headlines - used to be stabilizing oil costs. balance in these days intended hinder­ ing oil costs from falling in genuine phrases. The OECD was once shaped by way of often mature business economies marking the normalization of the postwar foreign economic climate after years of reconstruction, strict exchange laws, and so on. the purpose of the hot association was once to advertise 'the optimum sustainable progress and employment' in member nations. by the way, 1960 used to be additionally the 12 months which gave start to a extra loosely outlined block on the planet group, specifically the underdeveloped nations, qS the African colonial empires eventually broke up. the 2 firms turned adversaries within the Seventies within the strength fight over the strength flows of the world.

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The number of new dwellings is assumed to increase by 1% annually. The assumed replacement rate is 13% per year. ) Except for the abrupt movements in oil and gas prices during the first 3 years, the reference scenario is based on moderate changes in the variables affecting the behaviour at the various levels of the model. One motive for making these assumptions is to concentrate on a main feature of the specified model, namely the difference among the fuel shares in the new and existing dwelling stock.

Investment decisions for space-heating fuel choice are in principle reversible at a specified cost, as opposed to a priori assumptions made in several other studies of energy demand (Goett and McFadden, 1982; Ruderman, Levine and McMahon, 1984). Changes in space-heating equipment are restricted by conversion costs, and 'habit persistence'. This makes the choice model dynamic. 4. Given the fuel choice, the intensity of use is determined as a traditional continuous choice, and the demand equation is derived from the indirect utility function by Roy's identity.

Investment decisions for space-heating fuel choice are in principle reversible at a specified cost, as opposed to a priori assumptions made in several other studies of energy demand (Goett and McFadden, 1982; Ruderman, Levine and McMahon, 1984). Changes in space-heating equipment are restricted by conversion costs, and 'habit persistence'. This makes the choice model dynamic. 4. Given the fuel choice, the intensity of use is determined as a traditional continuous choice, and the demand equation is derived from the indirect utility function by Roy's identity.

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