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The drivers of and barriers to energy efficiency in renovation decisions of single-family home-owners

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  • Martin Jakob

    () (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

Abstract

Building renovation is one of the key factors in fostering energy efficiency in the building sector. However with regard to the long-term policy goals such as the Kyoto-Protocol and the IPCC recommendations the past and current rates of such renovations have been too low in most European countries including Switzerland. To identify the relevant factors affecting the renovation decisions of single family home owners three approaches are pursued. The first one consist of an analysis of the exogenous economic, technical and legal frameworks. In the second approach the perception of these boundary conditions by the owners from their subjective point of view is analysed, relying on a survey of owners of single-family homes. Owners were also queried about their motivations and reasons for insulating or not insulating. The third approach consists in the modelling of renovation decision regarding the building envelope based on revealed discrete choice data gained from a survey conducted in the Swiss residential building sector. The model is specified in relation to technical, socio-economic and behavioural hypotheses to test for commonly stated assumptions regarding drivers of and barriers to energy efficiency renovations. From the three approaches it can be concluded that building envelope renovations are affected by technical parameters, and general housing activities such as building extensions and motivations rather than by socio-economic variables such as income, education or age. Finally, findings are used to draw policy implications regarding instruments to promote energy efficiency in the buildings sector.

Suggested Citation

  • Martin Jakob, 2007. "The drivers of and barriers to energy efficiency in renovation decisions of single-family home-owners," CEPE Working paper series 07-56, CEPE Center for Energy Policy and Economics, ETH Zurich.
  • Handle: RePEc:cee:wpcepe:07-56
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    File URL: http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP56.pdf
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    References listed on IDEAS

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    1. Anderson, C Dennis & Claxton, John D, 1982. " Barriers to Consumer Choice of Energy Efficient Products," Journal of Consumer Research, Oxford University Press, vol. 9(2), pages 163-170, September.
    2. Martin Jakob & Martin Baur & Walter Ott, 2006. "An Analysis of Direct and Indirect Benefits and Costs of Energy-Efficiency Attributes in Residential Buildings," CEPE Working paper series 06-47, CEPE Center for Energy Policy and Economics, ETH Zurich.
    3. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy paradox and the diffusion of conservation technology," Resource and Energy Economics, Elsevier, vol. 16(2), pages 91-122, May.
    4. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, April.
    5. Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
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    Citations

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    Cited by:

    1. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2007. "Hedonic Price Functions for Zurich and Lugano with Special Focus on Electrosmog," CEPE Working paper series 07-57, CEPE Center for Energy Policy and Economics, ETH Zurich.
    2. Marie-Laure Nauleau, 2013. "Heavy subsidization reduces free-ridership : Evidence from an econometric study of the French dwelling insulation tax credit," CIRED Working Papers hal-00866445, HAL.
    3. Marie-Laure Nauleau, 2013. "Heavy subsidization reduces free-ridership : Evidence from an econometric study of the French dwelling insulation tax credit," Working Papers hal-00866445, HAL.
    4. Achtnicht, Martin & Madlener, Reinhard, 2014. "Factors influencing German house owners' preferences on energy retrofits," Energy Policy, Elsevier, vol. 68(C), pages 254-263.
    5. repec:eee:appene:v:212:y:2018:i:c:p:1333-1344 is not listed on IDEAS
    6. Collins, Matthew & Curtis, John, 2017. "An examination of the abandonment of applications for energy efficiency retrofit grants in Ireland," Energy Policy, Elsevier, vol. 100(C), pages 260-270.
    7. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    8. Jonas Friege & Georg Holtz & Émile J.L. Chappin, 2016. "Exploring Homeowners’ Insulation Activity," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 19(1), pages 1-4.
    9. Nauleau, Marie-Laure, 2014. "Free-riding on tax credits for home insulation in France: An econometric assessment using panel data," Energy Economics, Elsevier, vol. 46(C), pages 78-92.
    10. Achtnicht, Martin, 2011. "Do environmental benefits matter? Evidence from a choice experiment among house owners in Germany," Ecological Economics, Elsevier, vol. 70(11), pages 2191-2200, September.
    11. 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.
    12. repec:eee:energy:v:140:y:2017:i:p1:p:1005-1017 is not listed on IDEAS

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