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Università della Svizzera italiana

Habits and rational behavior in residential electricity demand

Filippini, Massimo ; Hirl, Bettina ; Masiero, Giuliano

In: Resource and Energy Economics, 2018, vol. 52, p. 137-152

Households make an investment analysis when buying new electrical appliances. Therefore, expectations about future electricity consumption may have an impact on current consumption and investment decisions. Dynamic partial adjustment models of residential electricity demand neglect rational consumer behavior. In this paper we propose a model for residential electricity demand that allows for...