1997
DOI: 10.1111/1468-0084.00054
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Non‐Linearities in Electricity Demand and Temperature: Parametric Versus Non‐Parametric Methods

Abstract: This paper investigates the relationship between outside air temperature and the residential demand for space heating energy. These non‐linearities are investigated empirically using high frequency panel data for a sample of UK households, and both parametric and non‐parametric methods for identifying non‐linearities are examined. The econometric evidence finds support for important non‐linearities across the range of observed temperatures and points to limitations in the use of parametric functional forms.

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Cited by 97 publications
(38 citation statements)
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“…Service demand should increase with income and decrease with service price [9,26]. In economic terms we can identify a satiation point for energy service comfort: below the satiation point the marginal utility of an energy service is positive; above it, the marginal utility turns negative [27,28]. In the current study we evaluate income-induced service demand in the future by introducing satiation factors to calibrate our model estimates.…”
Section: Model Calibrationmentioning
confidence: 99%
“…Service demand should increase with income and decrease with service price [9,26]. In economic terms we can identify a satiation point for energy service comfort: below the satiation point the marginal utility of an energy service is positive; above it, the marginal utility turns negative [27,28]. In the current study we evaluate income-induced service demand in the future by introducing satiation factors to calibrate our model estimates.…”
Section: Model Calibrationmentioning
confidence: 99%
“…There is a dynamic effect, as the load at t does not depend solely on the temperature at t, but also on the temperatures on the previous days (Le Comte & Warren, 1981). Exhaustion effects may appear because of the limited capacity of existing electricity appliances, so there is no further increase in electricity consumption when the temperature exceeds some saturation level (Henley & Peirson, 1997).…”
Section: Temperature Effectsmentioning
confidence: 99%
“…Non-parametric models have shown to perform better than parametric ones (Zarnikau, 2003;Henley and Peirson, 1997), but data requirements are very demanding and difficult to be satisfied by a country-level panel. Other solutions have thus been proposed: the use different variables for high and low temperatures (e.g.…”
Section: 2mentioning
confidence: 99%