Modelling Electricity Demand II
Posted: Wed May 11, 2005 3:26 pm
Hi all, I have another question to post.
Suppose I derive the relation between electicity demand and other economic variables (GDP, Production ,... ) using a regression. After running the regression I'll find the estimated parameter. What's the best way to model this in a SD model? Create a variable for electicity demand and use the parameter as constant in the model, i.e. for instance if the relation is Demand=a1*GDP + a2*Production I have to create a constant a1, a another stock for GDP linked with the demand,etc. or include the regression equation in the model?
Many thanks in advance
Suppose I derive the relation between electicity demand and other economic variables (GDP, Production ,... ) using a regression. After running the regression I'll find the estimated parameter. What's the best way to model this in a SD model? Create a variable for electicity demand and use the parameter as constant in the model, i.e. for instance if the relation is Demand=a1*GDP + a2*Production I have to create a constant a1, a another stock for GDP linked with the demand,etc. or include the regression equation in the model?
Many thanks in advance