Residential demand for wood: Results from the U.S. Pacific Northwest

We analyze household decisions to use wood for space heating. Logistic regression and simultaneous equation models are estimated by using billing history and survey data collected from households in the Pacific Northwest. Strong positive determinants of wood use are size of the household, heating degree days, and future electricity prices. Results from the simultaneous equation model indicate that wood and electricity demand are not strongly interrelated. Wood use is weakly positively related to electricity use in one equation and electricity use is weakly negatively related to wood use in the other.