Valuing energy-saving measures in residential buildings: A choice experiment study

Kwak, So Yoon; Yoo, Seung Hoon; Kwak, Seung Jun

doi:10.1016/j.enpol.2009.09.022

Cited by 103 publications

(60 citation statements)

References 15 publications

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“…Such surplus may be linked to other non-financial benefits of efficient buildings such as the offered reduction in CO 2 emissions, which, in turn, may imply the existence of environmental concerns. This finding is in keeping with other investigations where energy efficiency in buildings was also linked to environmental concerns [8,11,12].…”

Section: Discussionsupporting

confidence: 92%

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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: Discussionsupporting

confidence: 92%

“…Using the same approach, Kwak et al [12] arrive to the same conclusion in Korea. Both studies stress that energy efficiency is relevant, not only in terms of energy cost savings, but also because the consumers' statements are influenced by environmental concerns.…”

Section: Introductionmentioning

confidence: 70%

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

Duarte

Bravi

2017

Buildings

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“…Unlike this paper, previous studies on preferences for energy-saving measures in residential buildings did not focus explicitly on environmental benefits of such measures (e.g., Poortinga et al, 2003;Sadler, 2003;Banfi et al, 2008;Grösche and Vance, 2009;Kwak et al, 2010). However, their results suggest that not only cost benefits play a role in household decisions, but also other criteria.…”

Section: Literature Reviewmentioning

confidence: 61%

“…However, they include all kinds of benefits that potentially arise to respondents: cost-savings, increases in comfort, and environmental benefits. Kwak et al (2010) recently conducted a similar study among 509 households from Korean metropolitan areas. They also found substantial WTP amounts for several heating energy-saving measures (i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Environmental Benefits Matter? A Choice Experiment Among House Owners in Germany

Achtnicht¹

2010

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10094.pdf Non-technical SummaryThe residential building sector is a major emitter of the greenhouse gas carbon dioxide (CO 2 ) due to the high energy demand for electricity and heating, particularly in industrialised countries. In Germany, for example, approximately 30 percent of the total energy produced is consumed in residential buildings, with space (74 percent) and water heating (11 percent) dominating. Given the European Union Greenhouse Gas Emission Trading System (EU ETS), decentralised heat generation is of particular relevance for future climate policy. Unlike electricity and district heating, emissions arising from decentralised heat generation are not covered by the EU ETS. Therefore, measures to save heat energy in residential buildings are likely to result in effective CO 2 abatement and not just in a shift of emissions. In view of an annual refurbishment rate of approximately one to two percent, there is still considerable energy-saving potential. However, German regulations currently in force mostly prescribe standards, and thus ignore individual preferences.In order to know house owners' preferences on heating and insulation technologies and to learn more about their decisions we conducted a choice experiment concerning energy retrofits for existing houses in Germany. The sample consists solely of owner-occupiers of single-family detached houses, semidetached houses and row houses. In the experiment, participating house owners could either choose a modern heating system or an improved thermal insulation for their house. Unlike previous studies, we explicitly included both cost and environmental benefits of energy-saving measures.In particular, we find environmental benefits to have a significant impact on choices of heating systems. However, they played no role in terms of insulation choices. We further obtain substantial WTP measures for CO 2 savings. Therefore, we conclude that house owners are aware of their responsibility and willing to contribute to climate protection. However, there are a lot of uncertainties which hinder investments in energy-efficient technologies in the real world, but which were abstracted in the experiment. Our results suggest that future policies should address the market failure of information asymmetry and reduce related uncertainties as far as possible, rather than implement further and stricter standards. Das Wichtigste in K...

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“…Banfi et al, 2008;Branker et al, 2011;Dastrup et al, 2012;Daziano and Achtnicht, 2014;Eichholtz and Quigley, 2012;Farhar and Coburn, 2008;Jakob, 2006;Kwak et al, 2010;Tommerup and Svendsen, 2006;Zheng et al, 2012) on their roof, the effects of the presence of a PV system once the dwelling is offered on the house market remains unknown. On the other hand many researchers focused on the housing preferences (e.g.…”

Section: Measuring the Value Of Pv Systemmentioning

confidence: 99%

Homebuyers’ preference for installed PV systems – Discrete choice experiment

Glumac¹,

Thomas²

2015

22nd Annual European Real Estate Society Conference

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Purpose -This paper contains the findings of dwelling buyers' preferences towards installed photovoltaic (PV) system on their potential homes and thus provides an insight on the overall impact of PV systems to home purchasing.Design/methodology/approach -These preferences are determined by a discrete choice model that is based on stated preference data of dwelling buyers in the Eindhoven region.Findings -The most important findings are that a PV system is on average highly appreciated by dwelling buyers and that this appreciation is relatively larger by dwelling buyers that live in more urban/central neighborhoods.Research limitations/implications -This paper is essentially exploratory and raises a number of questions for further investigation such as determining the real estate value of installed PV systems.Practical implications -The findings would suggest that the diversity of homebuyers' preferences would vary. It is dependent on the homebuyers' personal characteristics but also on institutional settings of an energy system. Therefore, the provided insight must be regarded as local and further research is necessary for understanding the impact on the European residential real estate markets.Originality/value -This paper estimates the impact of the installed PV system on the housing choice by stated choice data on the local housing market.

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Valuing energy-saving measures in residential buildings: A choice experiment study

Cited by 103 publications

References 15 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

Do Environmental Benefits Matter? A Choice Experiment Among House Owners in Germany

Homebuyers’ preference for installed PV systems – Discrete choice experiment

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