IDEAS home Printed from https://ideas.repec.org/p/esr/wpaper/wp558.html
   My bibliography  Save this paper

Identification of the information gap in residential energy efficiency: How information asymmetry can be mitigated to induce energy efficiency renovations

Author

Listed:
  • Collins, Matthew
  • Curtis, John

Abstract

Improving the energy efficiency of residential dwellings is seen by policy-makers as an important contributor to the mitigation of climate change, a topic of ever increasing interest. Many countries have put in place policies aimed at stimulating the adoption of energy efficiency retrofit measures in private households. These policies generally focus on reducing costs to home owners, which in turn increases the net benefit of retrofitting, making a retrofit more attractive. We examine the drivers of retrofitting from an information point of view, looking mainly at how expected gross benefits can be increased as a means of inducing retrofitting activities. Using survey data, we examine how perceived effects of retrofitting impact on the likelihood that a home owner possesses an expressed interest in engaging in certain retrofit measures. We find the existence of information asymmetries in many cases between those who have and have not engaged in retrofit measures, while asymmetries are present in almost all instances between those who possess an expressed interest in retrofitting and those who do not. The most effective information that can be used to bridge this asymmetry and could lead to a greater interest in retrofitting among home owners are centred around energy costs and comfort. Perceived impacts of retrofitting on occupant health, property value and mould growth are not found to be significant drivers of interest in retrofitting.

Suggested Citation

  • 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).
  • Handle: RePEc:esr:wpaper:wp558
    as

    Download full text from publisher

    File URL: http://www.esri.ie/pubs/WP558.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Nair, Gireesh & Gustavsson, Leif & Mahapatra, Krushna, 2010. "Factors influencing energy efficiency investments in existing Swedish residential buildings," Energy Policy, Elsevier, vol. 38(6), pages 2956-2963, June.
    2. 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.
    3. 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.
    4. Collins, Matthew & Curtis, John, 2016. "An Examination of Energy Efficiency Retrofit Depth in Ireland," Papers WP532, Economic and Social Research Institute (ESRI).
    5. Fuerst, Franz & McAllister, Pat & Nanda, Anupam & Wyatt, Pete, 2016. "Energy performance ratings and house prices in Wales: An empirical study," Energy Policy, Elsevier, vol. 92(C), pages 20-33.
    6. 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.
    7. Ormandy, David & Ezratty, Véronique, 2012. "Health and thermal comfort: From WHO guidance to housing strategies," Energy Policy, Elsevier, vol. 49(C), pages 116-121.
    8. S. Dellavigna., 2011. "Psychology and Economics: Evidence from the Field," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
    9. Clinch, J. Peter & Healy, John D., 2000. "Domestic energy efficiency in Ireland: correcting market failure," Energy Policy, Elsevier, vol. 28(1), pages 1-8, January.
    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. Peter Grosche & Colin Vance, 2009. "Willingness to Pay for Energy Conservation and Free-Ridership on Subsidization: Evidence from Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 135-154.
    12. Mills, Bradford & Schleich, Joachim, 2012. "Residential energy-efficient technology adoption, energy conservation, knowledge, and attitudes: An analysis of European countries," Energy Policy, Elsevier, vol. 49(C), pages 616-628.
    13. 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.
    14. Achtnicht, Martin & Madlener, Reinhard, 2014. "Factors influencing German house owners' preferences on energy retrofits," Energy Policy, Elsevier, vol. 68(C), pages 254-263.
    15. Kwak, So-Yoon & Yoo, Seung-Hoon & Kwak, Seung-Jun, 2010. "Valuing energy-saving measures in residential buildings: A choice experiment study," Energy Policy, Elsevier, vol. 38(1), pages 673-677, January.
    16. Hlavinka, Alexander N. & Mjelde, James W. & Dharmasena, Senarath & Holland, Christine, 2016. "Forecasting the adoption of residential ductless heat pumps," Energy Economics, Elsevier, vol. 54(C), pages 60-67.
    17. Laura-Lucia Richter, 2013. "Social Effects in the Diffusion of solar Photovoltaic Technology in the UK," Cambridge Working Papers in Economics 1357, Faculty of Economics, University of Cambridge.
    18. 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.
    19. Fuerst, Franz & McAllister, Patrick & Nanda, Anupam & Wyatt, Peter, 2015. "Does energy efficiency matter to home-buyers? An investigation of EPC ratings and transaction prices in England," Energy Economics, Elsevier, vol. 48(C), pages 145-156.
    20. 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.
    21. Adam B. Jaffe & Robert N. Stavins, 1994. "Energy-Efficiency Investments and Public Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 43-66.
    22. 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.
    23. Curtis, John & Devitt, Niamh & Whelan, Adele, 2015. "Location and Occupancy of Energy Inefficient Residential Properties," Papers RB2015/3/2, Economic and Social Research Institute (ESRI).
    24. Bradford Mills & Joachim Schleich, 2012. "Residential Energy-Efficient Technology Adoption, Energy Conservation, Knowledge, and Attitudes: An Analysis of European Countries," Post-Print hal-00805711, HAL.
    25. Willand, Nicola & Ridley, Ian & Maller, Cecily, 2015. "Towards explaining the health impacts of residential energy efficiency interventions – A realist review. Part 1: Pathways," Social Science & Medicine, Elsevier, vol. 133(C), pages 191-201.
    26. Brounen, Dirk & Kok, Nils, 2011. "On the economics of energy labels in the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 166-179, September.
    27. Cameron, Trudy Ann, 1985. "A Nested Logit Model of Energy Conservation Activity by Owners of Existing Single Family Dwellings," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 205-211, May.
    Full references (including those not matched with items on IDEAS)

    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:wp558. 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: (Sarah Burns). General contact details of provider: http://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 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.

    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.