What Impedes Household Investment in Energy Efficiency and Renewable Energy?

Ameli, Nadia; Brandt, Nicola

doi:10.1561/101.00000067

Cited by 21 publications

(17 citation statements)

References 54 publications

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“…Investment in renewable energy technologies is essential to cut greenhouse gas emissions [86]. However, global CO 2 emissions are increasing, between 2004 and 2019 the increase was 28.6% [87]. In 2020, the COVID-19 pandemic reduced energy demand and reduced global CO 2 emissions by 8% compared to the previous year.…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

The Consumption of Renewable Energy Sources (RES) by the European Union Households between 2004 and 2019

Piekut

2021

Energies

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The paper provides the analysis of fuel and energy transition in households sector and its sustainable development in the period 2004–2019. The main purpose of the paper is to determine the development trends in the use of renewable energy sources (RES) in the EU countries household sector in 2004–2019, to recognize the state of development and functioning of the studied area as well as to indicate their successes and shortcomings in observed reality. The article employs the results of Energy balance sheets from Eurostat. The research entity were households from 28 European Union countries, with particular emphasis on households from Poland and selected neighboring countries. The research subjects there were different sources of renewable energy used by households, i.e., solar thermal system, geothermal technologies, primary solid biofuels, charcoal, biogases, blended biogasoline, blended biodiesels, ambient heat (heat pumps). To achieve the research objective a number of statistical measures ands methods, including cluster analysis and linear trend indicator applied. In the analyzed 16 years, an absolute and relative increase in the use of RES in the household sector was noticed. Taking into account the specificity of using RES in households, 6 clusters of countries were distinguished. In Poland, it was noted that there was a significant increase in the use of RES in households, with stagnation in the use of non-renewable energy sources, such as, for example, hard coal.

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Section: Discussion Of the Findingsmentioning

confidence: 99%

The Consumption of Renewable Energy Sources (RES) by the European Union Households between 2004 and 2019

Piekut

2021

Energies

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“…The model generates a large number of dynamic renovation strategies (denoted by i or ii) for each building type and calculates the present value of cost streams over a long period using a discount rate that reflects the subjective cost of equity and the cost of debt, eventually including risk premium factors which differ by income class [58].…”

Section: The Mathematical Frameworkmentioning

confidence: 99%

“…To compare alternatives, the model calculates the present value of cost streams of candidate strategies, j, which involve the choice of a particular equipment type and the timing of investment and scrappage. The cost stream includes capital costs and operating costs for purchasing energy and maintaining the equipment; the calculation of present value uses a discount rate distinctly defined for decision-maker classes, notably for distinguishing between income classes, as opportunity costs of cash flow differ by income class [58].…”

Section: The Mathematical Frameworkmentioning

confidence: 99%

Economic-Engineering Modelling of the Buildings Sector to Study the Transition towards Deep Decarbonisation in the EU

2019

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The paper presents a newly developed economic-engineering model of the buildings sector and its implementation for all the European Union (EU) Member States (MS), designed to study in detail ambitious energy efficiency strategies and policies, in the context of deep decarbonisation in the long term. The model has been used to support the impact assessment study that accompanied the European Commission's communication "A Clear Planet for All", in November 2018. The model covers all EU countries with a fine resolution of building types, and represents agent decision-making in a complex and dynamic economic-engineering mathematical framework. Emphasis is given to behaviours driving the energy renovation of buildings and the ensuing choice of equipment for heating and cooling. The model represents several market and non-market policies that can influence energy decisions in buildings and promote deep energy renovation. Moreover, the paper presents key applications for supporting policies targeting ambitious reduction of energy consumption and carbon emissions in buildings across Europe. The results illustrate that the achievement of ambitious energy-efficiency targets in the long-term heavily depends on pursuing a fast and extensive renovation of existing buildings, at annual rates between 1.21% and 1.77% for the residential sector and between 0.92% to 1.35% for the services sector. In both cases, the renovation rates are far higher past trends. Strong policies aimed at removing non-market barriers are deemed necessary. Electrification constitutes a reasonable choice for deeply renovated buildings and, as a result, almost 50% of households chooses electric heating over gas heating in the long term. However, heat pumps need to exploit further their learning potential to be economical and implementable for the various climatic conditions in Europe. The results also show that the cost impacts are modest even if renovation and decarbonisation in buildings develop ambitiously in the EU. The reduced energy bills due to energy savings can almost offset the increasing capital expenditures. Fundraising difficulties and the cost of capital are, however, of concern.

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“…It is not only banks and other financial institutions that are risk averse, property owners are too. They might be concerned that they will not own a property long enough to recoup the upfront costs through reduced operation costs, they might not value the long term gains over the short term costs (hyperbolic discounting), or they may face a situation of split-incentives between their making the investments but their tenants receiving the gains in terms of reduced operation costs (Ameli and Brandt, 2015;Swan and Brown, 2013). The novel forms of financing studied in this article thus give a striking illustration of the different lenses through which various people and organisations look at the opportunities and constraints of addressing the resource efficiency and carbon intensity of buildings and cities: some see and present a financial win-win opportunity that they happily take, others see a financial risk that they would rather not take (cf.…”

Section: Novel Forms Of Financing: An Experimental Governance Theory mentioning

confidence: 99%

Eco-Financing for Low-Carbon Buildings and Cities: Value and Limits

Heijden

2016

SSRN Journal

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Building owners and governments face constraints in financing the transformation and development of low-carbon buildings and cities. Banks and other finance providers are often risk-averse and unwilling to provide funds for such development and transformation. For some time now, governments and non-governmental organisations have experimented with novel forms of financing for low-carbon developments and transformations-often referred to as 'eco-financing'. This article studies six such governance instruments from Australia, the Netherlands and the United States to better understand their value and limits.

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What Impedes Household Investment in Energy Efficiency and Renewable Energy?

Cited by 21 publications

References 54 publications

The Consumption of Renewable Energy Sources (RES) by the European Union Households between 2004 and 2019

The Consumption of Renewable Energy Sources (RES) by the European Union Households between 2004 and 2019

Economic-Engineering Modelling of the Buildings Sector to Study the Transition towards Deep Decarbonisation in the EU

Eco-Financing for Low-Carbon Buildings and Cities: Value and Limits

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