Model Specification

The model specification is used in conjunction with data from the prepared dataset for regression analysis. Regression analysis yields β, the savings per day per household coefficient. In the model specification below, i denotes the ith household and t denotes the t th month of the post-treatment period.

Equation for the model specification
This equation is made of the following components:
Equation Component Description
Daily usage placeholder in the equation The average daily usage for meter read t for household i in the post-treatment period.
Treatment placeholder in the equation An indicator that household i is assigned to the treatment group.
Baseline usage vector placeholder in the equation A vector of three baseline usage control variables shown in the next three rows.
average preusage The average daily usage across household i’s available pre-treatment meter reads. If missing, this value is imputed with the average pre-usage of all customers in the population.
average preusage winter The average daily usage over the months of December through March across household i’s available pre-treatment meter reads. If missing, this value is imputed with household i’s value for
average preusage summer The average daily usage over the months of June through September across household i’s available pre-treatment meter reads. If missing, this value is imputed with household i’s value for
Month-year indicator placeholder in the equation A set of indicators for each month-year in the post-treatment period.
Coefficients placeholder in the equation Coefficients represent the relationship of the average preusage control variables to post-treatment usage. γt coefficients can vary by month-year.
Error term placeholder in the equation An error term.