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Does Retrofitted Insulation Reduce Household Energy Use? Theory and Practice

Author

Listed:
  • Arthur Grimes
  • Nicholas Preval
  • Chris Young
  • Richard Arnold
  • Tim Denne
  • Philippa Howden-Chapman
  • Lucy Telfar-Barnard

Abstract

We analyze the household energy use impacts of a large-scale, universally available, subsidized retrofit insulation and clean heat scheme. Theory shows that the energy-saving effects of such schemes are ambiguous. Our difference-in-differ-ence model of energy impacts resulting from each of insulation and clean heat treatment uses a sample of more than 12,000 treated houses. Retrofitted insulation treatment under the Warm Up New Zealand: Heat Smart program resulted in a statistically significant reduction in metered household energy consumption of almost 2%. Clean heat (heat pump) treatment resulted in increased electricity use but little change in total metered energy use other than at warmer temperatures, when heat pumps may have been used as air conditioners. Actual energy savings from insulation are approximately one-third of the modeled energy savings predicted by an engineering model.

Suggested Citation

  • Arthur Grimes & Nicholas Preval & Chris Young & Richard Arnold & Tim Denne & Philippa Howden-Chapman & Lucy Telfar-Barnard, 2016. "Does Retrofitted Insulation Reduce Household Energy Use? Theory and Practice," The Energy Journal, , vol. 37(4), pages 165-186, October.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:4:p:165-186
    DOI: 10.5547/01956574.37.4.agri
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    References listed on IDEAS

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    2. Phillips, Yvonne & Scarpa, Riccardo, 2010. "Waikato warm home study," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96494, New Zealand Agricultural and Resource Economics Society.
    3. Arik Levinson, 2014. "How Much Energy Do Building Energy Codes Really Save? Evidence from California," NBER Working Papers 20797, National Bureau of Economic Research, Inc.
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