IDEAS home Printed from https://ideas.repec.org/p/esr/wpaper/wp542.html
   My bibliography  Save this paper

Value for Money in Energy Efficiency Retrofits in Ireland: Grant Provider and Grant Recipients

Author

Listed:
  • Collins, Matthew
  • Curtis, John

Abstract

The Sustainable Energy Authority of Ireland (SEAI) administers the Better Energy Homes (BEH) scheme to provide a financial incentive for home owners to engage in energy efficiency retrofits. This study analyses the BEH data and Building Energy Rating data for BEH-participant homes to examine the value for money achieved by households. In addition, this research identifies which retrofit combinations provide greatest value for money, in terms of energy efficiency gains, for the grant provider. We utilise an error-in-variables approach to model the variation in benefits accruing to households of varying characteristics. We find that household and grant provider surplus can be maximised in the short term by retrofitting less energy efficient and larger homes, timber or steel frame homes and houses rather and apartments. The types of retrofits leading to the greatest surplus for both households and the grant provider include cavity wall insulation paired with either a boiler with heating controls or heating controls only retrofit.

Suggested Citation

  • Collins, Matthew & Curtis, John, 2016. "Value for Money in Energy Efficiency Retrofits in Ireland: Grant Provider and Grant Recipients," Papers WP542, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp542
    as

    Download full text from publisher

    File URL: https://www.esri.ie/pubs/WP542.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Curtis, 2002. "Estimates of fishermen's personal discount rate," Applied Economics Letters, Taylor & Francis Journals, vol. 9(12), pages 775-778.
    2. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
    3. Ahern, Ciara & Griffiths, Philip & O'Flaherty, Micheál, 2013. "State of the Irish housing stock—Modelling the heat losses of Ireland's existing detached rural housing stock & estimating the benefit of thermal retrofit measures on this stock," Energy Policy, Elsevier, vol. 55(C), pages 139-151.
    4. Hyland, Marie & Lyons, Ronan C. & Lyons, Seán, 2013. "The value of domestic building energy efficiency — evidence from Ireland," Energy Economics, Elsevier, vol. 40(C), pages 943-952.
    5. Clinch, J. Peter & Healy, John D., 2001. "Cost-benefit analysis of domestic energy efficiency," Energy Policy, Elsevier, vol. 29(2), pages 113-124, January.
    6. Erik R. Sirri & Peter Tufano, 1998. "Costly Search and Mutual Fund Flows," Journal of Finance, American Finance Association, vol. 53(5), pages 1589-1622, October.
    7. Saul Pleeter & John T. Warner, 2001. "The Personal Discount Rate: Evidence from Military Downsizing Programs," American Economic Review, American Economic Association, vol. 91(1), pages 33-53, March.
    8. Claus Michelsen & Karsten Neuhoff & Anne Schopp, 2015. "Using Equity Capital to Unlock Investment in Building Energy Efficiency?," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 5(19), pages 259-265.
    9. Davis, Harry L, 1976. "Decision Making within the Household," Journal of Consumer Research, Oxford University Press, vol. 2(4), pages 241-260, March.
    10. Howden-Chapman, Philippa & Viggers, Helen & Chapman, Ralph & O’Sullivan, Kimberley & Telfar Barnard, Lucy & Lloyd, Bob, 2012. "Tackling cold housing and fuel poverty in New Zealand: A review of policies, research, and health impacts," Energy Policy, Elsevier, vol. 49(C), pages 134-142.
    11. Uri Benzion & Amnon Rapoport & Joseph Yagil, 1989. "Discount Rates Inferred from Decisions: An Experimental Study," Management Science, INFORMS, vol. 35(3), pages 270-284, March.
    12. Claudia Aravena & Andrés Riquelme & Eleanor Denny, 2016. "Money, Comfort or Environment? Priorities and Determinants of Energy Efficiency Investments in Irish Households," Journal of Consumer Policy, Springer, vol. 39(2), pages 159-186, June.
    13. Amstalden, Roger W. & Kost, Michael & Nathani, Carsten & Imboden, Dieter M., 2007. "Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectations," Energy Policy, Elsevier, vol. 35(3), pages 1819-1829, March.
    14. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    15. Dowson, Mark & Poole, Adam & Harrison, David & Susman, Gideon, 2012. "Domestic UK retrofit challenge: Barriers, incentives and current performance leading into the Green Deal," Energy Policy, Elsevier, vol. 50(C), pages 294-305.
    16. Friedman, Chanoch & Becker, Nir & Erell, Evyatar, 2014. "Energy retrofit of residential building envelopes in Israel: A cost-benefit analysis," Energy, Elsevier, vol. 77(C), pages 183-193.
    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. Pillai, Arya & Tovar Reaños, Miguel & Curtis, John, 2021. "An examination of energy efficiency retrofit scheme applications by low-income households in Ireland," Papers WP700, Economic and Social Research Institute (ESRI).
    2. Matthew Collins & Seraphim Dempsey & John Curtis, 2018. "Householder Preferences for the Design of an Energy Efficiency Retrofit Subsidy in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 49(2), pages 145-172.

    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. Collins, Matthew & Dempsey, Seraphim & Curtis, John, 2017. "Financial incentives for residential energy efficiency investments in Ireland: Should the status quo be maintained?," Papers WP562, Economic and Social Research Institute (ESRI).
    2. Collins, Matthew & Curtis, John, 2017. "Identification of the information gap in residential energy efficiency: How information asymmetry can be mitigated to induce energy efficiency renovations," Papers WP558, Economic and Social Research Institute (ESRI).
    3. 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.
    4. Collins, Matthew & Curtis, John, 2016. "An Examination of Energy Efficiency Retrofit Depth in Ireland," Papers WP532, Economic and Social Research Institute (ESRI).
    5. Copiello, Sergio, 2017. "Building energy efficiency: A research branch made of paradoxes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1064-1076.
    6. Häckel, Björn & Pfosser, Stefan & Tränkler, Timm, 2017. "Explaining the energy efficiency gap - Expected Utility Theory versus Cumulative Prospect Theory," Energy Policy, Elsevier, vol. 111(C), pages 414-426.
    7. Samdruk Dharshing & Stefanie Lena Hille, 2017. "The Energy Paradox Revisited: Analyzing the Role of Individual Differences and Framing Effects in Information Perception," Journal of Consumer Policy, Springer, vol. 40(4), pages 485-508, December.
    8. Webber, Phil & Gouldson, Andy & Kerr, Niall, 2015. "The impacts of household retrofit and domestic energy efficiency schemes: A large scale, ex post evaluation," Energy Policy, Elsevier, vol. 84(C), pages 35-43.
    9. Jordan, Jeffrey L. & Anil, Bulent & Herbert, Velma & Chatterjee, Swan, 2009. "Human Capital Investments in Education and Home Stability: Exploring Education, Homeownership and Poverty," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49320, Agricultural and Applied Economics Association.
    10. Aydin, Erdal, 2016. "Energy conservation in the residential sector : The role of policy and market forces," Other publications TiSEM b9cedba8-1310-4097-90fb-b, Tilburg University, School of Economics and Management.
    11. Bardsley, Nicholas & Büchs, Milena & James, Patrick & Papafragkou, Anastasios & Rushby, Thomas & Saunders, Clare & Smith, Graham & Wallbridge, Rebecca & Woodman, Nicholas, 2019. "Domestic thermal upgrades, community action and energy saving: A three-year experimental study of prosperous households," Energy Policy, Elsevier, vol. 127(C), pages 475-485.
    12. Marieka M. Klawitter & C. Leigh Anderson & Mary Kay Gugerty, 2013. "Savings And Personal Discount Rates In A Matched Savings Program For Low-Income Families," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 468-485, July.
    13. Jindrich Matousek, 2018. "Individual Discount Rates: A Meta-Analysis of the Experimental Evidence," Working Papers IES 2018/40, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Dec 2018.
    14. Giraudet, Louis-Gaëtan & Bourgeois, Cyril & Quirion, Philippe, 2021. "Policies for low-carbon and affordable home heating: A French outlook," Energy Policy, Elsevier, vol. 151(C).
    15. Bond, Craig A. & Cullen, Kelly Giraud & Larson, Douglas M., 2009. "Joint estimation of discount rates and willingness to pay for public goods," Ecological Economics, Elsevier, vol. 68(11), pages 2751-2759, September.
    16. Coyne, Bryan & Lyons, Sean & McCoy, Daire, 2016. "The Effects of Home Energy Efficiency Upgrades on Social Housing Tenants: Evidence from Ireland," Papers WP544, Economic and Social Research Institute (ESRI).
    17. Shotaro Shiba & Kazumi Shimizu, 2018. "Does time inconsistency differ between gain and loss? An intra-personal comparison using a non-parametric elicitation method (A revised version)," Working Papers 1807, Waseda University, Faculty of Political Science and Economics.
    18. Hamza, Neveen & Gilroy, Rose, 2011. "The challenge to UK energy policy: An ageing population perspective on energy saving measures and consumption," Energy Policy, Elsevier, vol. 39(2), pages 782-789, February.
    19. Bourgeois, Cyril & Giraudet, Louis-Gaëtan & Quirion, Philippe, 2021. "Lump-sum vs. energy-efficiency subsidy recycling of carbon tax revenue in the residential sector: A French assessment," Ecological Economics, Elsevier, vol. 184(C).
    20. Louis-Gaetan Giraudet and Dominique Finon, 2015. "European experiences with white certifirecate obligations: A critical review of existing evaluations," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).

    More about this item

    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:esr:wpaper:wp542. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/esriiie.html .

    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: Sarah Burns (email available below). General contact details of provider: https://edirc.repec.org/data/esriiie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.