Durable good adoption and energy choice in multi-stage production processes: An empirical analysis of household appliances

A model of household clothes washing and drying demand and production is developed and empirically estimated with respect to adoption of clothes washers and dryers and the related clothes dryer energy choice. Using the multinomial logistic procedure, estimates are provided for choice unconditional as well as conditional on home heating energy choices. In all cases natural gas and electricity prices play a significant role in explaining not only clothes dryer energy choice but also whether or not a dryer and/or a washer is adopted in the housing unit. Household income, family size, housing structure age as well as climatic conditions are also found to figure prominently in explaining the adoption decision and energy choices.