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Impact of complexity and experience on energy investment decisions for residential buildings

Author

Listed:
  • Benedikt Maciosek
  • Mehdi Farsi
  • Sylvain Weber
  • Martin Jakob

Abstract

Complexity within the decision-making process can inhibit energy investment for residential buildings. In this paper we explore effects of complexity on investment behaviour, as well as the impact of experience with similar investments and of subsidies as a promoting policy tool. To shed light on these issues, we conduct a discrete choice experiment (DCE) among homeowners. Furthermore, we investigate appreciation of a simplifying one-stop-shop concept and calculate the willingness to invest. Our results show that homeowners are interested in energy investments and have a positive but decreasing marginal willingness to invest. Subsidies matter for investment choices and their effect more than offsets the negative impact of costs. Experience with similar investments plays a role for single home owners and especially those who are familiar with subsidies seem to be interested in the one-stop-shop concept.

Suggested Citation

  • Benedikt Maciosek & Mehdi Farsi & Sylvain Weber & Martin Jakob, 2022. "Impact of complexity and experience on energy investment decisions for residential buildings," IRENE Working Papers 22-07, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:22-07
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    More about this item

    Keywords

    Energy efficiency; Renewable energy; Discrete choice experiment; Conditional logit models;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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