Barriers to Energy Efficiency – Focus on Transaction Costs

Valentová, Michaela

doi:10.14311/1247

Cited by 8 publications

(6 citation statements)

References 16 publications

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“…Barriers can be split into market and non-market barriers [7]. Market barriers relate to "true" costs (that are actually paid by consumers, termed hidden up-front investment costs) and issues related to the access to capital resources [5,7,[34][35][36][37]. Nonmarket barriers refer to elements that do not have a direct payable or "true" cost and are often termed as "perceived costs" [36].…”

Section: Rationalementioning

confidence: 99%

“…Market barriers relate to "true" costs (that are actually paid by consumers, termed hidden up-front investment costs) and issues related to the access to capital resources [5,7,[34][35][36][37]. Nonmarket barriers refer to elements that do not have a direct payable or "true" cost and are often termed as "perceived costs" [36]. The non-market barriers can broadly be split in three groups: (a) (lack of) information and knowledge [38,39]; (b) (technical and regulatory) uncertainty [5,36,40] and (c) economic factors related to individuals (e.g., high opportunity cost of equity and debt) (see Table 1).…”

Section: Rationalementioning

confidence: 99%

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Policy Modelling for Ambitious Energy Efficiency Investment in the EU Residential Buildings

2022

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This paper presents the challenges of increasing the energy efficiency investments in European Union (EU) residential buildings in the context of achieving climate neutrality by 2050. The paper presents the results of the PRIMES buildings model in key energy policy applications to support cost-effective and fair policy making in buildings across Europe. The model covers, in detail, the building sector for all the EU Member States (MS), segmenting the buildings into many categories. The approach proposed includes non-market barriers in conventional microeconomic modelling, which combined with idiosyncratic preferences can capture poor energy efficiency choices and still represent rational behaviours. The model includes a detailed portrayal of policies specific to the sector, comprising economic and regulatory policies as well as institutional measures. The results of the model show that the removal of non-market barriers is of great importance in reducing energy consumption and increasing both the pace and the depth of renovation investment. However, the institutional measures alone are not enough to induce energy efficiency improvement to the scale required to achieve the climate neutrality objectives. Economic (i.e., subsidies) or regulatory measures (i.e., energy performance standards) are also required to decrease emissions and energy consumption in buildings and the paper compares different configurations thereof. The optimum policy mix obviously derives from a compromise among various aims including the cost-effectiveness of the policy budget and the distributional impacts across building and consumer types.

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Section: Rationalementioning

confidence: 99%

Section: Rationalementioning

confidence: 99%

Policy Modelling for Ambitious Energy Efficiency Investment in the EU Residential Buildings

2022

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“…The leading barriers to energy efficiency as identified are energy prices and technology; limited capital access; lack of or inadequate information; incorrect risk assessment; the principal/agent problem; and transaction costs in energy efficiency. As posited by Valentova [18], the barriers are all usually interconnected, and they may even reinforce each other as against being in a standalone form.…”

Section: Barriers To Building Energy Efficiency Affordable Housingmentioning

confidence: 99%

A Conceptual Benefits Realization Model for Minimization of Transaction Costs in Building Energy Efficiency (BEE) Affordable Housing Delivery

Raji

2019

MATEC Web Conf.

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Energy efficiency is fundamental to enhancing homes affordability. There are several unique challenges to affordable housing that owner-developers need to address in order for energy efficiency to make significant economic sense. Issues such as Transaction Costs (TCs) plays a significant role in achieving building energy efficiency (BEE) for affordable housing delivery. It is evident that split incentives, information asymmetry, institutional transition, opportunistic behavior, and ill-informed users incur different levels of TCs and affect stakeholder’s willingness to take part in BEE for affordable housing. A better understanding of the nature and structure of TCs is indispensable to enhance the market-drive and investment for BEE affordable housing. Uncertainty, specific investment, frequency, and bounded rationality seen as the key dimensions of TCs. The research focuses on how to minimize TCs involve in BEE affordable housing delivery. It was found in the literature that, the level of TCs for building energy efficiency estimated at 20.5% of total project costs. A conceptual competency-driven benefits realization model is proposed for minimizing TCs taking into consideration the peculiarities of the current housing projects delivery. This research aims to establish the significance of leveraging on BEE project team-competency and commitment organized within a strategic Benefits Realization Management framework to optimize client‘s benefits regarding minimizing TCs. The focus is on the aspect of a developer’s competencies and their project team commitment concerning minimizing TCs that structured within a Benefits Realization Management (BRM) practice. This model is proposed as a pro-active enabler tool to achieve Value for Money in BEE affordable housing projects. This paper is part of a series of publications.

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“…The owner also does not receive the benefits of the measure-the tenant pays lower energy bills. Conversely, the user has little incentive to invest, as there is high uncertainty as to length of the contract (Valentová, 2010).…”

Section: Conflict Of Interestmentioning

confidence: 99%

Ex post evaluation of energy efficiency programs: Case study of Czech Green Investment Scheme

Valentová

Karásek

Knápek

2018

WIREs Energy & Environment

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A significant amount of financing has been available for improvements in energy efficiency in buildings in recent years. However, careful evaluation of the real impacts of the programs is still inadequate. The paper provides an insight into the relationship between the expected outcomes and the actual results of an energy efficiency program. It does so on a case example of one of the most significant energy efficiency and renewable energy sources programs in Central Europe, the Green Savings Programme. In total, 206 measures were inspected in 124 projects of the program. The analysis of the inspections showed that there is a significant difference between the expected, verified CO2 emission reduction and ex post, real attained reduction (25% on average). The reasons are partly methodical, but most can be attributed to the behavioral factors of occupants in the respective buildings. The results therefore clearly show the need to tackle the relationship between the calculated (expected) energy savings (and related CO2 emission reduction) and the real savings which are highly influenced by building users. Ex post evaluations should be done, among other things, to provide a more accurate picture regarding the member states’ energy efficiency improvement obligations. Furthermore, such evaluation also provides an essential input for further optimisation of the future energy efficiency support programs. This article is categorized under: Energy Efficiency > Economics and Policy

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Barriers to Energy Efficiency – Focus on Transaction Costs

Cited by 8 publications

References 16 publications

Policy Modelling for Ambitious Energy Efficiency Investment in the EU Residential Buildings

Policy Modelling for Ambitious Energy Efficiency Investment in the EU Residential Buildings

A Conceptual Benefits Realization Model for Minimization of Transaction Costs in Building Energy Efficiency (BEE) Affordable Housing Delivery

Ex post evaluation of energy efficiency programs: Case study of Czech Green Investment Scheme

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