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Energy Efficiency Forecast as an Inverse Stochastic Problem: A Cross-Entropy Econometrics Approach

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  • Second Bwanakare

    (Faculty of Social and Economic Sciences, Institute of Economics and Finance, Cardinal Stephan Wyszynski University in Warsaw, 01-815 Warsaw, Poland
    Institute of Statistics in Rzeszów, 35-959 Rzeszów, Poland)

Abstract

This paper forecasts the energy efficiency coefficients at the Polish province level (NUT-2), based on imperfect and contradictory knowledge. On the one hand, we have information on the aggregated national energy efficiency coefficients in the industrial, transport, household, and service sectors. On the other hand, we also have information on the energy intensity at the Polish province level. Since the two samples are of different natures and known with uncertainty, we are obviously dealing with an inverse stochastic problem whose solution requires particular statistical devices. The applied technique of non-extensive cross-entropy econometrics generalizes the Shannon-Kullback-Leibler approach based on the Gaussian assumptions. Its justification is explained throughout this paper from both methodological and empirical points of view. The model forecasts lead to the high-value energy efficiency estimates from quasi-unstructured sets of information. This constitutes the main contribution of this research. These outputs should provide energy policy units with valuable new devices for the optimization of the energy management processes on a disaggregated local level where, by contrast, different agents and households act decisively. On a global level, the proposed technique can be applied in different EU countries and elsewhere, in the context of experimental official statistics.

Suggested Citation

  • Second Bwanakare, 2023. "Energy Efficiency Forecast as an Inverse Stochastic Problem: A Cross-Entropy Econometrics Approach," Energies, MDPI, vol. 16(23), pages 1-16, November.
  • Handle: RePEc:gam:jeners:v:16:y:2023:i:23:p:7715-:d:1285550
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    References listed on IDEAS

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