Energy efficiency investment drivers depend on the technology: implications for policy design and modelling choice

Panel: 9. Consumption and behaviour

This is a peer-reviewed paper.

Author:
Marie-Laure Nauleau, Agency for Environment and Energy Management (ADEME), France

Abstract

In this empirical paper, we analyze how the drivers and barriers of energy efficiency investments vary with retrofitting types and discuss the implications for policy design and modelling. We use a multinomial logit choice model estimated on micro-data over the period 2007/2012 from the French annual survey « Energy Management » (EM) dedicated to households’ energy efficiency investments. Retrofitting investments are distinguished between glazed surfaces insulation, opaque surfaces insulation, conventional or innovative (heat-pumps, renewable energy equipment) heating system replacement/installation and multiple-measures retrofit. The model combines both observed households and housing characteristics and subjective answers regarding motivations, circumstances, etc. We first find heterogeneous investment drivers between heating systems and building envelope insulation, especially regarding product lifetime. These results suggest that subsidizing retrofit cannot impact the timing of the decision but only the level of performance in case of investment in heating systems while it can impact both the timing and the level of performance in case of insulation, which have strong implications regarding subsidy efficiency and modelling choice. Secondary distinctions can be made between “conventional” and “innovative” heating systems given the economic profitability, the age of the building, the households’ income and their socio professional category. Among other results leading to policy and modelling implications, we also identify specific drivers to multiple-measures retrofitting, such as the opportunities created by recent move-in or access to ownership or the expectations regarding the green value.