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Energy Efficiency Investments in the Home: Swiss Homeowners and Expectations about Future Energy Prices

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  • Anna Alberini
  • Silvia Banfi
  • Celine Ramseier

Abstract

Using conjoint choice experiments, we surveyed 473 Swiss homeowners about their preferences for energy efficiency home renovations. We find that homeowners are responsive to the upfront costs of the renovation projects, government-offered rebates, savings in energy expenses, time horizon over which such savings would be realized, and thermal comfort improvement. The implicit discount rate is low, ranging from 1.5 to 3%, depending on model specification. This is consistent with Hassett and Metcalf (1993) and Metcalf and Rosenthal (1995), and with the fact that our scenarios contain no uncertainty. Respondents who feel completely uncertain about future energy prices are more likely to select the status quo (no renovations) in any given choice task and weight the costs of the investments more heavily than the financial gains (subsidies and savings on the energy bills). Renovations are more likely when respondents believe that climate change considerations are important determinants of home renovations.

Suggested Citation

  • Anna Alberini & Silvia Banfi & Celine Ramseier, 2013. "Energy Efficiency Investments in the Home: Swiss Homeowners and Expectations about Future Energy Prices," The Energy Journal, , vol. 34(1), pages 49-86, January.
    • Handle: RePEc:sae:enejou:v:34:y:2013:i:1:p:49-86
    DOI: 10.5547/01956574.34.1.3
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    References listed on IDEAS

    as
    1. 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.
    2. Martin Jakob & Reinhard Madlener, 2004. "Riding down the experience curve for energy-efficient building envelopes: the Swiss case for 1970–2020," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 153-178.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
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