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The Role of Individual Preferences in Explaining the Energy Performance Gap

Author

Listed:
  • Salomé Bakaloglou
  • Dorothée Charlier

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

Abstract

The aim of this research is to understand the role of socioeconomic characteristics and individual preferences in explaining the energy performance gap in the residential sector. This gap reflects the difference between the theoretical energy consumption of homes assessed by engineering models and real energy consumption. Using the ratio of the two consumption amounts to measure the gap, we perform a quantile regression to tease out the effects of preferences on the entire distribution of the energy performance gap spectrum instead of focusing on the conditional average. As a result, this research provides an original contribution: depending on the direction of the gap, our findings suggest that significant drivers include individual preferences for comfort over economy, which explain up to 12% of the gap variability, and poverty. This context should serve as a reminder to public authorities regarding the issues of rebound effect and household welfare.

Suggested Citation

  • Salomé Bakaloglou & Dorothée Charlier, 2021. "The Role of Individual Preferences in Explaining the Energy Performance Gap," Post-Print hal-03894082, HAL.
    • Handle: RePEc:hal:journl:hal-03894082
    DOI: 10.1016/j.eneco.2021.105611
    Note: View the original document on HAL open archive server: https://hal.science/hal-03894082
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    References listed on IDEAS

    as
    1. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.
    2. Quigley, John M & Rubinfeld, Daniel L, 1989. "Unobservables in Consumer Choice: Residential Energy and the Demand for Comfort," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 416-425, August.
    3. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
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    Citations

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    Cited by:

    1. Chaudhuri, Kausik & Huaccha, Gissell, 2023. "Who bears the energy cost? Local income deprivation and the household energy efficiency gap," Energy Economics, Elsevier, vol. 127(PA).
    2. Didem Gunes Yilmaz & Fatma Cesur, 2023. "A Study for the Improvement of the Energy Performance Certificate (EPC) System in Turkey," Sustainability, MDPI, vol. 15(19), pages 1-24, September.
    3. Morgan, J. & Chu, C.M. & Haines-Doran, T., 2023. "Competent retrofitting policy and inflation resilience: The cheapest energy is that which you don't use," Energy Economics, Elsevier, vol. 121(C).

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    More about this item

    Keywords

    Residential energy consumption; Household preferences; Energy performance gap; Quantile regression; Quantile treatment effect;
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