Modeling Energy Transition in US Commercial Real Estate: A Diffusion Comparison with the Industrial Sector

Abstract

This paper proposes a refinement of the multivariate diffusion UCTT model to explore the energy transition in the US commercial sector. The model analyzes the electricity market’s interdependencies between coal, gas, and biomass, allowing a deeper understanding of the system. In addition, the comparison with the industrial sector electric system provides a valuable indication of how the US commercial sector has solid grounds for a more ready and suitable environment to accelerate the energy transition.

Keywords

• real estate
• energy transition
• multivariate diffusion model
• renewable energy
• commercial sector