A Bounded Rationality Model of Private Energy Investment Decisions

20 Pages Posted: 7 Aug 2006

See all articles by Tobias Wittmann

Tobias Wittmann

Technical University of Berlin

Robbie Ian Morrison

Technische Universität Berlin (TU Berlin)

Thomas Bruckner

Technische Universität Berlin (TU Berlin)

Date Written: August 3, 2006

Abstract

The future evolution of energy demand in cities has a major influence on energy market size, pricing, competition level, consumer relations, overall CO2 emissions, and supply security. This paper presents a bounded rational decision model which can be used to estimate this evolution. It starts with an overview over barriers to energy efficiency investment followed by an introduction to bounded rationality decision models. It further presents a concept which can be used to parameterize this model by introducing a typology of representative actors who face representative decision tasks. The decision outcomes are determined and discussed.

Keywords: bounded rationality, energy, investment decision, model

JEL Classification: D10, Q41

Suggested Citation

Wittmann, Tobias and Morrison, Robbie Ian and Bruckner, Thomas, A Bounded Rationality Model of Private Energy Investment Decisions (August 3, 2006). Available at SSRN: https://ssrn.com/abstract=922020 or http://dx.doi.org/10.2139/ssrn.922020

Tobias Wittmann (Contact Author)

Technical University of Berlin ( email )

Marchstr. 18
10623 Berlin
Germany
++49-30-314 23 280 (Phone)
++49-30-314 21 683 (Fax)

HOME PAGE: http://www.iet.tu-berlin.de/efeu/Mitarbeiter/Leer/Wittman/wittman.html

Robbie Ian Morrison

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Berlin, 10623
Germany

Thomas Bruckner

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Berlin, 10623
Germany

HOME PAGE: http://www.iet.tu-berlin.de/~bruckner

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