IDEAS home Printed from https://ideas.repec.org/p/car/carecp/20-19.html
   My bibliography  Save this paper

A systematic review of energy efficiency home retrofit evaluation studies

Author

Abstract

This is the first systematic review of studies evaluating the energy savings and cost effectiveness of residential energy efficiency retrofit programs. We review 33 evaluations of 19 residential retrofit programs that were implemented in the United States and Europe between 1979 and 2014. Our sample is restricted to program evaluations that used actual household billing data from 159,935 retrofitted households. We report four primary findings. First, none of the studies in our sample reported deep savings (e.g., 50% or greater) from retrofit programs. The mean reduction in measured electricity and/or fuel consumption due to energy efficiency retrofits for all programs included in our sample was roughly 7.5%. However, because many households use both fuel and electricity, total household energy savings from the retrofit programs evaluated in our sample are probably smaller. Second, reported program savings decreased as the internal validity of study design increased. Third, as measured by realized savings and cost-effectiveness, the most promising retrofits were water heater insulation and programmable thermostats, whereas the least promising retrofits were storm windows and doors. Fourth, programs with high reported savings and low costs of conserved energy served low-income, fuel-heated households exclusively.

Suggested Citation

  • Lauren Giandomenico & Maya Papineau & Nicholas Rivers, 2020. "A systematic review of energy efficiency home retrofit evaluation studies," Carleton Economic Papers 20-19, Carleton University, Department of Economics.
  • Handle: RePEc:car:carecp:20-19
    as

    Download full text from publisher

    File URL: https://www.carleton.ca/economics/wp-content/uploads/cewp20-19.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kenneth Gillingham & Karen Palmer, 2014. "Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 18-38, January.
    2. Goldman, Charles A. & Greely, Kathleen M. & Harris, Jeffrey P., 1988. "Retrofit experience in U.S. multifamily buildings: Energy savings, costs, and economics," Energy, Elsevier, vol. 13(11), pages 797-811.
    3. Gilbert E. Metcalf & Kevin A. Hassett, 1999. "Measuring The Energy Savings From Home Improvement Investments: Evidence From Monthly Billing Data," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 516-528, August.
    4. Nicholas Rivers and Leslie Shiell, 2016. "Free-Riding on Energy Efficiency Subsidies: the Case of Natural Gas Furnaces in Canada," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    5. Liang, Jing & Qiu, Yueming & James, Timothy & Ruddell, Benjamin L. & Dalrymple, Michael & Earl, Stevan & Castelazo, Alex, 2018. "Do energy retrofits work? Evidence from commercial and residential buildings in Phoenix," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 726-743.
    6. Wagner, Barbara Shohl & Diamond, Richard C., 1987. "The Kansas City warm room project: Economics, energy savings and health and comfort impacts," Energy, Elsevier, vol. 12(6), pages 447-457.
    7. Hirst, Eric & Bronfman, Benson & Goeltz, Richard & Timble, John & Lerman, David & Keating, Kenneth, 1984. "Evaluation of utility residential energy conservation programs: A Pacific Northwest example," Energy, Elsevier, vol. 9(3), pages 193-206.
    8. Eric Hirst & Richard Goeltz, 1984. "The Economics of Utility Residential Energy Conservation Programs: A Pacific Northwest Example," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 159-170.
    9. Brown, Marilyn A. & Berry, Linda G., 1995. "Determinants of program effectiveness: Results of the national weatherization evaluation," Energy, Elsevier, vol. 20(8), pages 729-743.
    10. Joshua Graff Zivin and Kevin Novan, 2016. "Upgrading Efficiency and Behavior: Electricity Savings from Residential Weatherization Programs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    11. Paul L. Joskow & Donald B. Marron, 1992. "What Does a Negawatt Really Cost? Evidence from Utility Conservation Programs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 41-74.
    12. Hunt Allcott & Michael Greenstone, 2017. "Measuring the Welfare Effects of Residential Energy Efficiency Programs," NBER Working Papers 23386, National Bureau of Economic Research, Inc.
    13. Kenneth Gillingham & Amelia Keyes & Karen Palmer, 2018. "Advances in Evaluating Energy Efficiency Policies and Programs," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 511-532, October.
    14. Kerr, Niall & Gouldson, Andy & Barrett, John, 2017. "The rationale for energy efficiency policy: Assessing the recognition of the multiple benefits of energy efficiency retrofit policy," Energy Policy, Elsevier, vol. 106(C), pages 212-221.
    15. Talwar, Raj & Hirst, Eric, 1981. "Energy savings from the Minnesota low-income weatherization programme," Energy Policy, Elsevier, vol. 9(1), pages 48-51, March.
    16. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    17. Hunt Allcott & Christopher Knittel & Dmitry Taubinsky, 2015. "Tagging and Targeting of Energy Efficiency Subsidies," American Economic Review, American Economic Association, vol. 105(5), pages 187-191, May.
    18. Christensen, Peter & Francisco, Paul & Myers, Erica & Nogueira Meirelles De Souza, Mateus, 2019. "Decomposing the Wedge: Mechanisms Driving the Gap Between Projected and Realized Returns in Energy Efficiency Programs," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291226, Agricultural and Applied Economics Association.
    19. Delmas, Magali A. & Fischlein, Miriam & Asensio, Omar I., 2013. "Information strategies and energy conservation behavior: A meta-analysis of experimental studies from 1975 to 2012," Energy Policy, Elsevier, vol. 61(C), pages 729-739.
    20. Andor, Mark A. & Fels, Katja M., 2018. "Behavioral Economics and Energy Conservation – A Systematic Review of Non-price Interventions and Their Causal Effects," Ecological Economics, Elsevier, vol. 148(C), pages 178-210.
    21. Keating, Kenneth M. & Hirst, Eric, 1986. "Advantages and limits of longitudinal evaluation research in energy conservation," Evaluation and Program Planning, Elsevier, vol. 9(2), pages 113-120, January.
    22. Hirst, Eric & Goeltz, Richard, 1985. "Estimating energy savings due to conservation programmes : The BPA residential weatherization pilot programme," Energy Economics, Elsevier, vol. 7(1), pages 20-28, January.
    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. Hannah Villeneuve & Ahmed Abdeen & Maya Papineau & Sharane Simon & Cynthia Cruickshank & William O'Brien, 2020. "New insights on the energy impacts of telework," Carleton Economic Papers 20-20, Carleton University, Department of Economics.
    2. Papineau, Maya & Yassin, Kareman & Newsham, Guy & Brice, Sarah, 2021. "Conditional demand analysis as a tool to evaluate energy policy options on the path to grid decarbonization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    3. Andrew, Kevin & Majerbi, Basma & Rhodes, Ekaterina, 2022. "Slouching or speeding toward net zero? Evidence from COVID-19 energy-related stimulus policies in the G20," Ecological Economics, Elsevier, vol. 201(C).
    4. Ekaterina Alekhanova & Maya Papineau & Kareman Yassin, 2023. "Realized Savings from Canada's Building Energy Codes," Carleton Economic Papers 23-06, Carleton University, Department of Economics.

    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. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    2. Lang, Ghislaine & Lanz, Bruno, 2022. "Climate policy without a price signal: Evidence on the implicit carbon price of energy efficiency in buildings," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    3. Saunders, Harry D. & Roy, Joyashree & Azevedo, Inês M.L. & Chakravarty, Debalina & Dasgupta, Shyamasree & De La Rue Du Can, Stephane & Druckman, Angela & Fouquet, Roger & Grubb, Michael & Lin, Boqiang, 2021. "Energy efficiency: what has research delivered in the last 40 years?," LSE Research Online Documents on Economics 114344, London School of Economics and Political Science, LSE Library.
    4. Louis-Gaëtan Giraudet & Antoine Missemer, 2023. "The History of Energy Efficiency in Economics: Breakpoints and Regularities," Post-Print halshs-02301636, HAL.
    5. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Working Papers 2018.07, FAERE - French Association of Environmental and Resource Economists.
    6. Ben Gilbert & Jacob LaRiviere & Kevin Novan, 2019. "Additionality, Mistakes, and Energy Efficiency Investment," Working Papers 2019-01, Colorado School of Mines, Division of Economics and Business.
    7. Singhal, Puja & Pahle, Michael & Kalkuhl, Matthias & Levesque, Antoine & Sommer, Stephan & Berneiser, Jessica, 2022. "Beyond good faith: Why evidence-based policy is necessary to decarbonize buildings cost-effectively in Germany," Energy Policy, Elsevier, vol. 169(C).
    8. Louis-Gaëtan Giraudet & Antoine Missemer, 2019. "The Economics of Energy Efficiency, a Historical Perspective," CIRED Working Papers halshs-02301636, HAL.
    9. Yujie Xu & Vivian Loftness & Edson Severnini, 2021. "Using Machine Learning to Predict Retrofit Effects for a Commercial Building Portfolio," Energies, MDPI, vol. 14(14), pages 1-24, July.
    10. Bettina Chlond & Claire Gavard & Lisa Jeuck, 2023. "How to Support Residential Energy Conservation Cost-Effectively? An analysis of Public Financial Schemes in France," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 29-63, May.
    11. Joshua Graff Zivin and Kevin Novan, 2016. "Upgrading Efficiency and Behavior: Electricity Savings from Residential Weatherization Programs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    12. Louis-Gaëtan Giraudet & Antoine Missemer, 2019. "The Economics of Energy Efficiency, a Historical Perspective," Working Papers halshs-02301636, HAL.
    13. Joshua Blonz, 2019. "The Welfare Costs of Misaligned Incentives: Energy Inefficiency and the Principal-Agent Problem," Finance and Economics Discussion Series 2019-071, Board of Governors of the Federal Reserve System (U.S.).
    14. Hammerle, Mara & Burke, Paul J., 2022. "From natural gas to electric appliances: Energy use and emissions implications in Australian homes," Energy Economics, Elsevier, vol. 110(C).
    15. Louis-Gaëtan Giraudet & Sébastien Houde & Joseph Maher, 2018. "Moral Hazard and the Energy Efficiency Gap: Theory and Evidence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 755-790.
    16. Hondeborg, Dianne & Probst, Benedict & Petkov, Ivalin & Knoeri, Christof, 2023. "The effectiveness of building retrofits under a subsidy scheme: Empirical evidence from Switzerland," Energy Policy, Elsevier, vol. 180(C).
    17. Jing Liang & Yueming Qiu & Bo Xing, 2021. "Social Versus Private Benefits of Energy Efficiency Under Time-of-Use and Increasing Block Pricing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 43-75, January.
    18. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    19. Qiu, Yueming & Kahn, Matthew E., 2019. "Impact of voluntary green certification on building energy performance," Energy Economics, Elsevier, vol. 80(C), pages 461-475.
    20. Lang, Ghislaine & Lanz, Bruno, 2021. "Energy efficiency, information, and the acceptability of rent increases: A survey experiment with tenants," Energy Economics, Elsevier, vol. 95(C).

    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:car:carecp:20-19. 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: Court Lindsay (email available below). General contact details of provider: .

    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.