Examining the decision-making processes behind household energy investments: A review

Kastner, Ingo; Stern, Paul C.

doi:10.1016/j.erss.2015.07.008

Cited by 183 publications

(157 citation statements)

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“…Kastner and Stern [32] stress that, in the decision theory framework, people do actually consider a relatively reduced number of elements when choosing among alternatives. For these reasons, in this experiment, the identification of both the number of attributes and the alternatives has been carried out according to the following steps:…”

Section: Attributes Levels and Experimental Designmentioning

confidence: 99%

Does the Energy Label (EL) Matter in the Residential Market? A Stated Preference Analysis in Barcelona

Duarte

Bravi

2017

Buildings

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Energy performance in buildings has become a milestone in EU environmental policy in the last 15 years. Nonetheless, in some countries such as Spain the full acceptance of the Energy Performance of Buildings Directive is still relatively rare and novel, with little evidence as to how relevant it is in the real estate market. There are different reasons for this phenomenon: on the one hand, the real estate crisis has paralyzed the completion of most of the works in new/refurbished efficient buildings (which renders it impossible to use revealed preference methods); on the other hand, information is not complete and the consumer's perception of the relevant cost/benefits could be incorrect. For this reason, assessing the trade-off between the energy label and other specific attributes of the housing market has become important. To that end, a choice experiment following an RPL (Random Parameter Logit) model was employed. This form is suitable to accommodate various empirical situations where the assumptions of the Conditional Logit model have to be relaxed. Results suggest that the Energy Label (EL) does matter in the real estate market in relation to other residential attributes. Marginal willingness to pay for an "A" label instead of an "E" is significantly higher than the stated savings in energy costs. The respondents' utility function seems to be also influenced by their educational level, as well as by their preference to own a house as opposed to renting it.

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Section: Attributes Levels and Experimental Designmentioning

confidence: 99%

Does the Energy Label (EL) Matter in the Residential Market? A Stated Preference Analysis in Barcelona

Duarte

Bravi

2017

Buildings

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“…3 Like cars or houses, energy efficient refurbishments rate as high-involvement purchases, as they meet several criteria that increase involvement (Kastner and Stern 2015), e.g., upfront costs are high and the functional principle is complex. Thus, the decision process is expected to be rather elaborate and imply extensive problem solving.…”

Section: Consumer Decision-makingmentioning

confidence: 99%

“…Ideally, both pillars are pursued at the same time (Kastner, Stern 2015). If the potential of these pillars is unlocked, this can contribute significantly to reducing the energy impact of the residential building sector (Bauermann 2016).…”

Section: Introductionmentioning

confidence: 99%

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A Consumer Decision-Making Process? Unfolding Energy Efficiency Decisions of German Owner-Occupiers

Baginski

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe German housing stock needs substantial energetic retrofit to meet carbon reduction targets. Various instruments are available to motivate building owners to improve the energy efficiency of their dwellings. These instruments mainly focus on the economic issue of funding and financing energy efficient refurbishments as the decision is interpreted as a rational choice of an investment. Their success is rather low as the refurbishment rate stagnates around 1% per year for more than a decade. The objective of this study is to gain deeper insights into the decision-making of owner-occupiers regarding energy efficient refurbishments and to offer an adjusted framework to analyse the decision. A qualitative-explorative research approach is chosen, whereby in-depth interviews with independent energy advisers have been conducted.Results point out that the decision of owner-occupiers towards energy efficient refurbishment measures qualifies as an extensive consumer decision rather than a pure investment decision.The refurbishment measure implies high cognitive as well as emotional involvement. Owneroccupiers use several criteria to evaluate refurbishments, which alleviate monetary determinants. The standard process model of consumer decision-making, reaching from need recognition to post-purchase evaluation, qualifies for structuring the decision. It allows analysing drivers and barriers stepwise and deriving implications for activating homeowners and for promoting energy efficiency in each step. Current policies partly choose unrewarding argumentations to stimulate energy efficient refurbishments since they do not take all relevant factors of this consumer decision into account.

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“…The most important factors influencing the decision making when it comes to large energy relevant investments was reviewed by (Kastner and Stern 2015). The focus was on owner-occupied semidetached or single family houses.…”

Section: Introductionmentioning

confidence: 99%

Using a One-Stop-Shop Concept to Guide Decisions When Single-Family Houses Are Renovated

2017

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One way of reducing the use of fossil fuels in Denmark is to look into possible energy savings in the building stock, especially the large number of single-family houses from 1960-80. Energy renovation in this housing segment is progressing slowly.The aim of this project was to find out how a One-Stop-Shop (OSS) or full-service concept could be used to guide the extensive energy renovation of single-family houses. The purpose was partly to identify the benefits and disadvantages of using the concept, and partly to evaluate its potential for increasing the degree of renovation. The scope of the project was to carry out renovations on up to three houses.The project showed that the concept on its own was not enough to motivate the house owners to engage in extensive renovation. However, interviews with the house owners indicated that the renovation that took place had probably been expanded and improved due to the use of the concept, and that the renovation in general benefitted from an independent advisor.

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Examining the decision-making processes behind household energy investments: A review

Cited by 183 publications

References 50 publications

Does the Energy Label (EL) Matter in the Residential Market? A Stated Preference Analysis in Barcelona

Does the Energy Label (EL) Matter in the Residential Market? A Stated Preference Analysis in Barcelona

A Consumer Decision-Making Process? Unfolding Energy Efficiency Decisions of German Owner-Occupiers

Using a One-Stop-Shop Concept to Guide Decisions When Single-Family Houses Are Renovated

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