IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v88y2011i6p2245-2253.html
   My bibliography  Save this article

Energy renovation of single-family houses in Denmark utilising long-term financing based on equity

Author

Listed:
  • Kragh, J.
  • Rose, J.

Abstract

This paper aims to present an economic overview of the opportunities for energy renovation of single-family houses in Denmark financed over the long term. The paper focuses on the economic difference between energy savings and the repayment of investment. Taking out the average remaining 20% equity in long-term property mortgage loans and utilising it for extensive energy renovation improves both the economy and the extent of included measures. Approximately 30% of energy consumption in Denmark is used for space heating. The existing 1 million single-family houses account for approximately half of this, thus making energy renovation a key factor for the reduction of CO2 emissions. The conclusions were that in average the possible budget for renovation varied between [euro]20,000 and 40,000 per single-family house. The equity of the house was particularly dependant on geographical location and construction period. Different energy renovation measures were analysed in terms of economy showing that a wide range of specific measures had a positive economic balance for the homeowner from year 1. The economic balance between saved energy and repayment of the investment is however very dependent on the assumed future energy price. An example showed that a typical house from 1925, still in its original form, could yield annual savings for the homeowner of approximately [euro]2600, assuming a future energy price of 0.2 [euro]/kWÂ h. At the current energy price level of 0.1 [euro]/kWÂ h energy renovation in general is almost economically neutral for the homeowner.

Suggested Citation

  • Kragh, J. & Rose, J., 2011. "Energy renovation of single-family houses in Denmark utilising long-term financing based on equity," Applied Energy, Elsevier, vol. 88(6), pages 2245-2253, June.
    • Handle: RePEc:eee:appene:v:88:y:2011:i:6:p:2245-2253
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-2619(10)00569-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nikolaidis, Yiannis & Pilavachi, Petros A. & Chletsis, Alexandros, 2009. "Economic evaluation of energy saving measures in a common type of Greek building," Applied Energy, Elsevier, vol. 86(12), pages 2550-2559, December.
    2. Jakob, Martin, 2006. "Marginal costs and co-benefits of energy efficiency investments: The case of the Swiss residential sector," Energy Policy, Elsevier, vol. 34(2), pages 172-187, January.
    3. AfDB AfDB, . "AfDB Group Annual Report 2007," Annual Report, African Development Bank, number 63 edited by Koua Louis Kouakou.
    4. Amstalden, Roger W. & Kost, Michael & Nathani, Carsten & Imboden, Dieter M., 2007. "Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectations," Energy Policy, Elsevier, vol. 35(3), pages 1819-1829, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oropeza-Perez, Ivan & Østergaard, Poul Alberg, 2014. "The influence of an estimated energy saving due to natural ventilation on the Mexican energy system," Energy, Elsevier, vol. 64(C), pages 1080-1091.
    2. Wang, Xiaotong & Lu, Meijun & Mao, Wei & Ouyang, Jinlong & Zhou, Bo & Yang, Yunkai, 2015. "Improving benefit-cost analysis to overcome financing difficulties in promoting energy-efficient renovation of existing residential buildings in China," Applied Energy, Elsevier, vol. 141(C), pages 119-130.
    3. Mahapatra, Krushna & Gustavsson, Leif & Haavik, Trond & Aabrekk, Synnøve & Svendsen, Svend & Vanhoutteghem, Lies & Paiho, Satu & Ala-Juusela, Mia, 2013. "Business models for full service energy renovation of single-family houses in Nordic countries," Applied Energy, Elsevier, vol. 112(C), pages 1558-1565.
    4. Wilson, C. & Pettifor, H. & Chryssochoidis, G., 2018. "Quantitative modelling of why and how homeowners decide to renovate energy efficiently," Applied Energy, Elsevier, vol. 212(C), pages 1333-1344.
    5. Mainali, Brijesh & Mahapatra, Krushna & Pardalis, Georgios, 2021. "Strategies for deep renovation market of detached houses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    6. Zvingilaite, Erika, 2013. "Modelling energy savings in the Danish building sector combined with internalisation of health related externalities in a heat and power system optimisation model," Energy Policy, Elsevier, vol. 55(C), pages 57-72.
    7. Krzysztof Księżopolski & Mirosław Drygas & Kamila Pronińska & Iwona Nurzyńska, 2020. "The Economic Effects of New Patterns of Energy Efficiency and Heat Sources in Rural Single-Family Houses in Poland," Energies, MDPI, vol. 13(23), pages 1-19, December.
    8. Oropeza-Perez, Ivan & Østergaard, Poul Alberg, 2014. "Potential of natural ventilation in temperate countries – A case study of Denmark," Applied Energy, Elsevier, vol. 114(C), pages 520-530.
    9. Handing Guo & Wanzhen Qiao & Yuehong Zheng, 2020. "Effectiveness Evaluation of Financing Platform Operation of Buildings Energy Saving Transformation Using ANP-Fuzzy in China: An Empirical Study," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    10. Yin, Yanhong & Aikawa, Kohei & Mizokami, Shoshi, 2016. "Effect of housing relocation subsidy policy on energy consumption: A simulation case study," Applied Energy, Elsevier, vol. 168(C), pages 291-302.
    11. Baek, Cheonghoon & Park, Sanghoon, 2012. "Policy measures to overcome barriers to energy renovation of existing buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3939-3947.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Häckel, Björn & Pfosser, Stefan & Tränkler, Timm, 2017. "Explaining the energy efficiency gap - Expected Utility Theory versus Cumulative Prospect Theory," Energy Policy, Elsevier, vol. 111(C), pages 414-426.
    2. Zvingilaite, Erika & Klinge Jacobsen, Henrik, 2015. "Heat savings and heat generation technologies: Modelling of residential investment behaviour with local health costs," Energy Policy, Elsevier, vol. 77(C), pages 31-45.
    3. Zvingilaite, Erika, 2013. "Modelling energy savings in the Danish building sector combined with internalisation of health related externalities in a heat and power system optimisation model," Energy Policy, Elsevier, vol. 55(C), pages 57-72.
    4. zvingilaite, Erika & Klinge Jacobsen, Henrik, 2012. "Heat savings and heat generation technologies: Modelling of residential investment behaviour with local externalities," MPRA Paper 41545, University Library of Munich, Germany.
    5. Charlier, Dorothée & Risch, Anna, 2012. "Evaluation of the impact of environmental public policy measures on energy consumption and greenhouse gas emissions in the French residential sector," Energy Policy, Elsevier, vol. 46(C), pages 170-184.
    6. Copiello, Sergio, 2017. "Building energy efficiency: A research branch made of paradoxes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1064-1076.
    7. Samdruk Dharshing & Stefanie Lena Hille, 2017. "The Energy Paradox Revisited: Analyzing the Role of Individual Differences and Framing Effects in Information Perception," Journal of Consumer Policy, Springer, vol. 40(4), pages 485-508, December.
    8. Phillips, Yvonne, 2012. "Landlords versus tenants: Information asymmetry and mismatched preferences for home energy efficiency," Energy Policy, Elsevier, vol. 45(C), pages 112-121.
    9. Copiello, Sergio & Gabrielli, Laura & Bonifaci, Pietro, 2017. "Evaluation of energy retrofit in buildings under conditions of uncertainty: The prominence of the discount rate," Energy, Elsevier, vol. 137(C), pages 104-117.
    10. Copiello, Sergio, 2015. "Achieving affordable housing through energy efficiency strategy," Energy Policy, Elsevier, vol. 85(C), pages 288-298.
    11. Friege, Jonas & Chappin, Emile, 2014. "Modelling decisions on energy-efficient renovations: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 196-208.
    12. Friedman, Chanoch & Becker, Nir & Erell, Evyatar, 2014. "Energy retrofit of residential building envelopes in Israel: A cost-benefit analysis," Energy, Elsevier, vol. 77(C), pages 183-193.
    13. Khayatian, Fazel & Sarto, Luca & Dall'O', Giuliano, 2017. "Building energy retrofit index for policy making and decision support at regional and national scales," Applied Energy, Elsevier, vol. 206(C), pages 1062-1075.
    14. Streicher, Kai Nino & Berger, Matthias & Panos, Evangelos & Narula, Kapil & Soini, Martin Christoph & Patel, Martin K., 2021. "Optimal building retrofit pathways considering stock dynamics and climate change impacts," Energy Policy, Elsevier, vol. 152(C).
    15. Wesam Salah Alaloul & Muhammad Altaf & Muhammad Ali Musarat & Muhammad Faisal Javed & Amir Mosavi, 2021. "Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study," Sustainability, MDPI, vol. 13(8), pages 1-38, April.
    16. Jastrzębiec-Witowska, Anna, 2015. "Rolnictwo obywatelskie w USA: studium przypadku stanu Kentucky," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(169).
    17. Jolanta Kryspin-Watson & John Pollner & Sonja Nieuwejaar, 2008. "Climate Change Adaptation in Europe and Central Asia," World Bank Publications - Reports 25985, The World Bank Group.
    18. Kumbaroğlu, Gürkan & Madlener, Reinhard, 2011. "Evaluation of Economically Optimal Retrofit Investment Options for Energy Savings in Buildings," FCN Working Papers 14/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    19. Pérez-Martínez, P.J. & Vassallo-Magro, J.M., 2013. "Changes in the external costs of freight surface transport In Spain," Research in Transportation Economics, Elsevier, vol. 42(1), pages 61-76.
    20. Mária Csutora & Ágnes Zsóka, 2011. "Maximizing the Efficiency of Greenhouse Gas Related Consumer Policy," Journal of Consumer Policy, Springer, vol. 34(1), pages 67-90, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:6:p:2245-2253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.