Determinants of households’ investment in energy efficiency and renewables: evidence from the OECD survey on household environmental behaviour and attitudes

Abstract

This paper provides novel evidence on the main factors behind consumer choices regarding investments in energy efficiency and renewable energy technologies using the OECD Survey on Household Environmental Behaviour and Attitudes. The empirical analysis is based on the estimation of binary logit regression models. Empirical results suggest that households' propensity to invest in clean energy technologies depends mainly on home ownership, income, social context and household energy conservation practices. Indeed, home owners and high-income households are more likely to invest than renters and low-income households. In addition, environmental attitudes and beliefs, as manifest in energy conservation practices or membership in an environmental non-governmental organisation, also play a relevant role in technology adoption.

Demographic determinants of Canada’s households’ adoption of energy efficiency measures: observations from the Households and Environment Survey, 2013

“…More recently, Ameli and Brandt (2015) examined the OECD Survey on Household Environmental Behavior and Attitudes in order to examine the determinants of households' investment in energy efficiency and renewables. This is a fairly large survey with 12,000 respondents and a sample that was stratified in each country according to age, gender, region and socio-economics (Ameli & Brandt, 2015).…”

“…This is a fairly large survey with 12,000 respondents and a sample that was stratified in each country according to age, gender, region and socio-economics (Ameli & Brandt, 2015). This is an interesting survey as it covers several different types of energy efficiency actions with respondents being asked whether or not they invested in top-rated energy efficiency appliances, energy-saving lights, energy-efficient windows, thermal insulation for their walls or roof, heating thermostats, solar panels for electricity or hot water, or ground source heat pumps (Ameli & Brandt, 2015).…”

“…This is a fairly large survey with 12,000 respondents and a sample that was stratified in each country according to age, gender, region and socio-economics (Ameli & Brandt, 2015). This is an interesting survey as it covers several different types of energy efficiency actions with respondents being asked whether or not they invested in top-rated energy efficiency appliances, energy-saving lights, energy-efficient windows, thermal insulation for their walls or roof, heating thermostats, solar panels for electricity or hot water, or ground source heat pumps (Ameli & Brandt, 2015). For most of these energy efficiency actions the age of the respondent appears to be important; the probability of investments in light bulbs, heat thermostats, thermal insulation and energy-efficient windows increases with age, while the probability to choose heat pumps decreases with age (Ameli & Brandt, 2015).…”

“…In their study sampling OECD countries, Ameli and Brandt (2015) found that many types of investments depend positively on income: top-rated energy efficiency appliances, energy-efficient windows, thermal insulation for walls or roof, and heating thermostats. For light bulbs, solar panels, and heat pumps, household income was not significant and therefore not included in their preferred empirical models (Ameli & Brandt, 2015).…”

“…For light bulbs, solar panels, and heat pumps, household income was not significant and therefore not included in their preferred empirical models (Ameli & Brandt, 2015).…”