Analysis of the residential location choice and household energy consumption behavior by incorporating multiple self-selection effects

Abstract

It is expected that the residential location choice and household energy consumption behavior might correlate with each other. Besides, due to the existence of self-selection effects, the observed inter-relationship between them might be the spurious result of the fact that some unobserved variables are causing both. These concerns motivate us to (1) consider residential location choice and household energy consumption behavior (for both in-home appliances and out-of-home cars) simultaneously and, (2) explicitly control self-selection effects so as to capture a relatively true effect of land-use policy on household energy consumption behavior. An integrated model termed as joint mixed Multinomial Logit-Multiple Discrete-Continuous Extreme Value model is presented here to identify the sensitivity of household energy consumption to land use policy by considering multiple self-selection effects. The model results indicate that land-use policy do play a great role in changing Beijing residents’ energy consumption pattern, while the self-selection effects cannot be ignored when evaluating the effect of land-use policy. Based on the policy scenario design, it is found that increasing recreational facilities and bus lines in the neighborhood can greatly promote household's energy-saving behavior. Additionally, the importance of “soft policy” and package policy is also emphasized in the context of Beijing.