Combining Behavioral Approaches with Techno-Economic Energy Models: Dealing with the Coupling Non-Linearity Issue

Francesco Moresino and Emmanuel Fragnière
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Francesco Moresino: Geneva School of Business Administration, University of Applied Sciences Western Switzerland (HES-SO Genève), Carouge 1227, Switzerland
Emmanuel Fragnière: Service Design Lab (IEM), University of Applied Sciences Western Switzerland (HES-SO Valais), Sierre 3960, Switzerland

Energies, 2018, vol. 11, issue 7, 1-14

Abstract: Consumer behaviour is often complex and even sometimes not economically rational. Wrongly, the first techno-economic energy planning models assumed the economic rationality hypothesis and, therefore, represented consumers’ behaviour incorrectly. Nevertheless, the current trend is to couple these models with behavioural approaches that were specially developed to describe the real consumer choices. A novel approach was recently proposed, where a classical energy model is coupled with a share of choice model. This new approach has however two weaknesses. First, the share of choice increases the computational complexity as it necessitates additional binary variables for the modelling. Second, for complex models, the inclusion of the share of choice can lead to non-linearity and hence to severe computational problems. In the present paper, we propose to improve this method by externalizing the share of choice. Doing so, the number of binary variable will be reduced and the linearity property will be kept even for complex models.

Keywords: consumer behaviour; energy and environmental planning model; mathematical programming; optimization; share of choice model; hybrid energy model; behavioural operational research (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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