IDEAS home Printed from https://ideas.repec.org/p/esr/wpaper/wp569.html
   My bibliography  Save this paper

Advertising and investment spillovers in the diffusion of residential energy efficiency renovations

Author

Listed:
  • Collins, Matthew
  • Curtis, John

Abstract

This paper examines the diffusion of energy efficiency retrofits across the national housing stock and specifically examines whether the level of applications for subsidy support is impacted by advertising, either online or through print and radio media, and whether there are spillover effects from prior investments in retrofits on new retrofit subsidy applications. While there are numerous drivers of household retrofitting activities, the focus here is specifically on advertising and spillover effects. The analysis employs a Bass growth model using a subsidy scheme administrative dataset from Ireland. The research finds that some but not all advertising related to a retrofit subsidy scheme increases the level of scheme applications and also that there are spillover effects from a niche retrofit scheme targeting communities (covering both private and community buildings) on private applications for energy efficiency subsidy support.

Suggested Citation

  • Collins, Matthew & Curtis, John, 2017. "Advertising and investment spillovers in the diffusion of residential energy efficiency renovations," Papers WP569, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp569
    as

    Download full text from publisher

    File URL: https://www.esri.ie/pubs/WP569.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. José Antonio Moya, 2016. "A Natural Analogy to the Diffusion of Energy-Efficient Technologies," Energies, MDPI, vol. 9(6), pages 1-14, June.
    3. Sean Lyons, 2014. "Timing and determinants of local residential broadband adoption: evidence from Ireland," Empirical Economics, Springer, vol. 47(4), pages 1341-1363, December.
    4. 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.
    5. Frank M. Bass & Trichy V. Krishnan & Dipak C. Jain, 1994. "Why the Bass Model Fits without Decision Variables," Marketing Science, INFORMS, vol. 13(3), pages 203-223.
    6. Islam, Towhidul, 2014. "Household level innovation diffusion model of photo-voltaic (PV) solar cells from stated preference data," Energy Policy, Elsevier, vol. 65(C), pages 340-350.
    7. Laura-Lucia Richter, 2013. "Social Effects in the Diffusion of Solar Photovoltaic Technology in the UK," Working Papers EPRG 1332, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    8. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    9. McCoy, Daire & Curtis, John, 2016. "The Timing and other Determinants of Gas Central Heating Adoption," Papers WP539, Economic and Social Research Institute (ESRI).
    10. Diffney, Seán & Lyons, Seán & Malaguzzi Valeri, Laura, 2013. "Evaluation of the effect of the Power of One campaign on natural gas consumption," Energy Policy, Elsevier, vol. 62(C), pages 978-988.
    11. Aalbers, Rob & van der Heijden, Eline & Potters, Jan & van Soest, Daan & Vollebergh, Herman, 2009. "Technology adoption subsidies: An experiment with managers," Energy Economics, Elsevier, vol. 31(3), pages 431-442, May.
    12. Lund, Peter, 2006. "Market penetration rates of new energy technologies," Energy Policy, Elsevier, vol. 34(17), pages 3317-3326, November.
    13. Frank M. Bass, 2004. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 50(12_supple), pages 1825-1832, December.
    14. V. Srinivasan & Charlotte H. Mason, 1986. "Technical Note—Nonlinear Least Squares Estimation of New Product Diffusion Models," Marketing Science, INFORMS, vol. 5(2), pages 169-178.
    15. Yuri Peers & Dennis Fok & Philip Hans Franses, 2012. "Modeling Seasonality in New Product Diffusion," Marketing Science, INFORMS, vol. 31(2), pages 351-364, March.
    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. Hoicka, Christina E. & Parker, Paul & Andrey, Jean, 2014. "Residential energy efficiency retrofits: How program design affects participation and outcomes," Energy Policy, Elsevier, vol. 65(C), pages 594-607.
    19. Frank M. Bass, 2004. "Comments on "A New Product Growth for Model Consumer Durables The Bass Model"," Management Science, INFORMS, vol. 50(12_supple), pages 1833-1840, December.
    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. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    22. Jain, Dipak C & Rao, Ram C, 1990. "Effect of Price on the Demand for Durables: Modeling, Estimation, and Findings," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(2), pages 163-170, April.
    23. Diffney, Seán & Lyons, Seán & Malaguzzi Valeri, Laura, 2013. "Evaluation of the effect of the Power of One campaign on natural gas consumption," Energy Policy, Elsevier, vol. 62(C), pages 978-988.
    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. Frantál, Bohumil & Dvořák, Petr, 2022. "Reducing energy poverty in deprived regions or supporting new developments in metropolitan suburbs? Regional differences in the use of subsidies for home energy efficiency renovations," Energy Policy, Elsevier, vol. 171(C).

    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. 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.
    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. Massiani, Jérôme & Gohs, Andreas, 2015. "The choice of Bass model coefficients to forecast diffusion for innovative products: An empirical investigation for new automotive technologies," Research in Transportation Economics, Elsevier, vol. 50(C), pages 17-28.
    4. Barnes, Belinda & Southwell, Darren & Bruce, Sarah & Woodhams, Felicity, 2014. "Additionality, common practice and incentive schemes for the uptake of innovations," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 43-61.
    5. Ramírez-Hassan, Andrés & Montoya-Blandón, Santiago, 2020. "Forecasting from others’ experience: Bayesian estimation of the generalized Bass model," International Journal of Forecasting, Elsevier, vol. 36(2), pages 442-465.
    6. Xiao, Yu & Han, Jingti, 2016. "Forecasting new product diffusion with agent-based models," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 167-178.
    7. Krishnan, Trichy V. & Feng, Shanfei & Jain, Dipak C., 2023. "Peak sales time prediction in new product sales: Can a product manager rely on it?," Journal of Business Research, Elsevier, vol. 165(C).
    8. Najmeh Madadi & Azanizawati Ma’aram & Kuan Yew Wong, 2017. "A simulation-based product diffusion forecasting method using geometric Brownian motion and spline interpolation," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1300992-130, January.
    9. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.
    10. Kurdgelashvili, Lado & Shih, Cheng-Hao & Yang, Fan & Garg, Mehul, 2019. "An empirical analysis of county-level residential PV adoption in California," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 321-333.
    11. Tunstall, Thomas, 2015. "Iterative Bass Model forecasts for unconventional oil production in the Eagle Ford Shale," Energy, Elsevier, vol. 93(P1), pages 580-588.
    12. Singhal, Shakshi & Anand, Adarsh & Singh, Ompal, 2020. "Studying dynamic market size-based adoption modeling & product diffusion under stochastic environment," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    13. Han, Zhongya & Tang, Zhongjun & He, Bo, 2022. "Improved Bass model for predicting the popularity of product information posted on microblogs," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    14. Jinah Yang & Daiki Min & Jeenyoung Kim, 2020. "The Use of Big Data and Its Effects in a Diffusion Forecasting Model for Korean Reverse Mortgage Subscribers," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    15. Chumnumpan, Pattarin & Shi, Xiaohui, 2019. "Understanding new products’ market performance using Google Trends," Australasian marketing journal, Elsevier, vol. 27(2), pages 91-103.
    16. Rajkumar Venkatesan & Trichy V. Krishnan & V. Kumar, 2004. "Evolutionary Estimation of Macro-Level Diffusion Models Using Genetic Algorithms: An Alternative to Nonlinear Least Squares," Marketing Science, INFORMS, vol. 23(3), pages 451-464, August.
    17. Venkatesan, Rajkumar & Kumar, V., 2002. "A genetic algorithms approach to growth phase forecasting of wireless subscribers," International Journal of Forecasting, Elsevier, vol. 18(4), pages 625-646.
    18. McCoy, Daire & Curtice, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," LSE Research Online Documents on Economics 86625, London School of Economics and Political Science, LSE Library.
    19. V. Kumar & Trichy V. Krishnan, 2002. "Multinational Diffusion Models: An Alternative Framework," Marketing Science, INFORMS, vol. 21(3), pages 318-330, July.
    20. McCoy, Daire & Curtis, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," Resource and Energy Economics, Elsevier, vol. 52(C), pages 64-86.

    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:wp569. See general information about how to correct material in RePEc.

    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. RePEc uses bibliographic data supplied by the respective publishers.