Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 3 of 3)



The Role of Uncertainty in Shaping Individual Preferences for Residential Energy Renovation Decisions

Salomé Bakaloglou and Fateh Belaïd

Year: 2022
Volume: Volume 43
Number: Number 4
DOI: 10.5547/01956574.43.4.sbak
View Abstract

Abstract:
This article examines a crucial question that has been raised in recent years in both policy and economic literature: the role of uncertainty as a barrier to energy retrofit decisions. We develop a discrete choice experiment to elicit preferences for energy renovation measures. This methodologically innovative experiment design includes two insurance schemes covering potential sources of uncertainty as attributes of the energy retrofit alternatives. We use a mixed logit model to investigate the nature of systematic heterogeneity in household preferences for attributes of energy retrofit solutions. The article shows that uncertainties related to future energy pricing and retrofit quality are negatively perceived during energy-renovation decision making. This impact varies according to household characteristics such as risk aversion and perceptions of the economic context. The results suggest that public policies should support and accompany the development of insurance schemes to increase energy renovation rates.



Decarbonizing the Residential Sector: How Prominent is Household Energy-Saving Behavior in Decision Making?

Fateh Belaid

Year: 2024
Volume: Volume 45
Number: Number 1
DOI: 10.5547/01956574.45.1.fbel
View Abstract

Abstract:
In addition to scrutinizing the decision process behind energy efficiency investment, this study investigates its association with energy-saving behavior. Its conceptual underpinnings are based on the intersection of behavioral change and "energy efficiency paradox" theories. Based upon a rich, disaggregated dataset representative of the French housing sector, it develops an energy-saving score based on the item response theory model, which considers household attributes and ability levels. Then this score is used as an independent factor of a multivariate probit model to examine the drivers of household investment decisions for various energy performance solutions. The results highlight that: (i) contextual and attitudinal attributes are two major drivers of energy efficiency investments, and (ii) depending on the energy solution considered, there is a significant inverse relationship between energy-savings behavior and energy efficiency investments. This reveals that environmental awareness is not necessarily a driving factor behind energy efficiency investments and emphasizes the so-called "rebound effect" issue. The results support the view that promoting energy-saving behaviors and energy efficiency investments necessitate differentiated public policies that consider both individual preferences and housing stock heterogeneity. The analysis offers valuable policy guidance and research agenda outlining future energy efficiency research priorities.



Beyond Cost: A Multifaceted Look at Financial Incentives and Residential Energy Renovation Behavior

Fateh Belaïd and Camille Massié

Year: 2024
Volume: Volume 45
Number: Special Issue
DOI:
View Abstract

Abstract:
This article analyzes the structural barriers hindering the massive adoption of energy efficiency investments, and fueling the well-known energy efficiency paradox. Based on a rich cross-sectional dataset surveying 3,000 French homeowners in 2018, a Logit model is developed to estimate the probability of households to renovate their homes. A focus is made on financial incentives for energy-efficient retrofit works, which take the form of direct subsidies. Accounting for dwelling and household heterogeneity, results suggest the existence of a threshold effect in the impact of financial incentives, estimated around 2,400 euros minimum, optimal around 3,000 euros. It is only above this amount of aid that households feel encouraged to undertake renovation work. This has implications for the design of future effective energy policies.





Begin New Search
Proceed to Checkout

 

© 2025 International Association for Energy Economics | Privacy Policy | Return Policy