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Analysis of investment decisions based on homeowners' stated preferences: Policy measures, smart technologies and financing options

Author

Listed:
  • Benedikt Maciosek
  • Mehdi Farsi
  • Sylvain Weber
  • Martin Jakob

Abstract

Various energy investments are possible in residential buildings. Owners’ opportunities are moreover extending with smart technologies and optimisation options, as well as with the rise of collective investment projects. In this context, we investigate owners’ investment decisions by conducting a discrete choice experiment that includes all these elements. Our experiment allows to evaluate the willingness-to- pay (WTP) for investing in energy efficiency and for purchasing renewable energy. The effect of several energy policies is also investigated using treatment information messages displayed to randomly selected respondents. The results based on our sample of 1,451 Swiss homeowners suggest that WTP for energy investments is positive but marginally decreasing, so that it may be insufficient for very sophisticated and expensive investments. A general paradigm shift is not evident from our results, as the respondents prefer investing alone rather than collectively. Also, load management and storage appear to be valued only in combination but not separately. Amongst all policies, only for a binding CO2 cap per square meter of the accommodation a significant effect can be detected.

Suggested Citation

  • Benedikt Maciosek & Mehdi Farsi & Sylvain Weber & Martin Jakob, 2022. "Analysis of investment decisions based on homeowners' stated preferences: Policy measures, smart technologies and financing options," IRENE Working Papers 22-06, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:22-06
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy efficiency; Renewable energy; Choice experiment; Conditional logit models;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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