Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectations

The aim of this paper is to analyse the profitability of energy-efficient retrofit investments in the Swiss residential building sector from the house owner's perspective. Different energy price expectations, policy instruments such as subsidies, income tax deduction and a carbon tax, as well as potential future cost degression of energy efficiency measures were taken into account. The discounted cash flow method was used for the investment analysis of different retrofit packages applied to a model building scheduled for renovation, i.e. a single-family house constructed between 1948 and 1975. The results show that present Swiss policy instruments push investments for energy-efficient retrofitting to profitability. Cost degression has a minor significance for investment profitability. However, the most relevant factor for the investment analysis is the expected energy price. Expecting a future fuel oil price at the level of 2005, efficiency investments are close to profitability even without policy support. If higher energy prices were expected, energy-efficient retrofitting would be an attractive investment opportunity.     

The potential for energy efficiency gains in the Canadian commercial building sector: A stochastic frontier study

The achievement of energy efficiency in commercial buildings is a function of the activities undertaken, the technology in place, and the extent to which those technologies are used efficiently. We study the factors that affect efficient energy use in the Canadian commercial sector by applying a stochastic frontier approach to a cross-section of Canadian commercial buildings included in the Commercial and Institutional Building Energy Use Survey (CIBEUS). Structural and climate-control features of the buildings as well as climatic conditions are assumed to determine the location of the frontier, while management-related variables including such factors as ownership type and activities govern whether or not the maximally attainable efficiency along the frontier is achieved. Our results indicate that although, on average, buildings appear to be fairly efficient, certain types of operations are more likely than others to exhibit energy efficiencies that are significantly worse than average. These results, along with those related to the effects of physical characteristics on the stochastic efficiency frontier, suggest that there is scope for focused policy initiatives to increase energy efficiency in this sector.     

Manufacturing productivity and energy efficiency: a stochastic efficiency frontier analysis

This paper presents a mathematical model to estimate both production frontier and energy demand frontier, and evaluate the energy efficiency in the automotive manufacturing sector using plant‐level production and utility consumption data. By using the stochastic frontier analysis, two models—an output efficiency model (production frontier) and an input efficiency model (energy demand frontier)—are developed to analyze the plant's energy efficiency performance relative to the ‘best practice’ among peers. Both the structure and parameters of two stochastic frontier functions are identified to understand the relationship between production inputs (e.g., utilities and plant‐specific variables) and the overall productivity. A case study of a set of automotive engine manufacturing plants is conducted and shows that electricity has higher efficiency than other forms of utility in those production‐related activities, and the regional and climate factors have significant impacts on energy efficiency. The models provide a way to measure how far from the production frontier as well as how far from the energy demand frontier the plant is. The results also provide useful information about the inefficient energy components in manufacturing facilities. The opportunities of improving plant‐level efficiency in automotive manufacturing plants can be revealed by the results. Copyright © 2015 John Wiley & Sons, Ltd.     

Energy efficiency in New Zealand's residential sector: A systemic analysis

This paper examines the complexity arising from the multiple, time varying factors that impact energy efficiency in New Zealand's residential sector. Initial problem structuring involved the analysis of behaviour over time of main variables and incorporated stakeholder analysis using a systems approach. Further, a systems model of the problem situation was developed using a participative group model building process. The analysis of the model revealed a set of feedback loops operating in the system identified as responsible for the complexity of the problem situation relating to energy efficiency. The paper concludes by highlighting some of the main results relating to long-term structural changes suggested by the stakeholders involved in this study to change the behaviour of the system.     

Impact of energy efficiency upgrade retrofits on the residential energy consumption in Canada

The impact of various energy efficiency upgrade scenarios on the annual energy consumption of the Canadian housing stock is assessed using the Canadian Residential Energy End‐use Model (CREEM). The energy efficiency upgrade scenarios that are considered include major retrofits, such as the improvement of the house envelope by adding insulation, and the replacement of the existing heating system and appliances by higher efficiency units, as well as minor retrofits, such as lighting fixture, thermostat, showerhead and aerator upgrades that reduce energy consumption. The economic feasibility of each upgrade was assessed using the indicator ‘energy savings per dollar investment’. The results indicate that the energy savings potential of the retrofits is rather small, resulting in savings of 0–8 per cent of the total energy consumption of the Canadian housing stock. Copyright © 2001 John Wiley & Sons, Ltd.     

Modeling global residential sector energy demand for heating and air conditioning in the context of climate change

In this article, we assess the potential development of energy use for future residential heating and air conditioning in the context of climate change. In a reference scenario, global energy demand for heating is projected to increase until 2030 and then stabilize. In contrast, energy demand for air conditioning is projected to increase rapidly over the whole 2000–2100 period, mostly driven by income growth. The associated CO₂ emissions for both heating and cooling increase from 0.8 Gt C in 2000 to 2.2 Gt C in 2100, i.e. about 12% of total CO₂ emissions from energy use (the strongest increase occurs in Asia). The net effect of climate change on global energy use and emissions is relatively small as decreases in heating are compensated for by increases in cooling. However, impacts on heating and cooling individually are considerable in this scenario, with heating energy demand decreased by 34% worldwide by 2100 as a result of climate change, and air-conditioning energy demand increased by 72%. At the regional scale considerable impacts can be seen, particularly in South Asia, where energy demand for residential air conditioning could increase by around 50% due to climate change, compared with the situation without climate change.     

Red light for Green Paper: The EU policy on energy efficiency

The EU Green Paper on energy efficiency calls for action to decrease energy use and thus achieve increased competitiveness, fulfil the environmental targets and increase security of supply. In this comment, we examine the role the EU Commission suggest that energy efficiency, and policies supporting energy efficiency, takes. The policies and the suggestions are qualitatively elaborated upon in the light of the goal of a common European electricity market. We suggest that the rationales for the energy efficiency measures are weak, and that the suggested goals of increased competitiveness, environmental targets, and security of supply are best reached with the direct measures especially designed for each goal. Some of the energy efficiency measures may counter-act other direct policies. Further, The Green Paper measures may prove detrimental to the European Electricity market insofar as the policies suggested could lead to a policy fatigue among the electricity consumers.     

A method of identifying and weighting indicators of energy efficiency assessment in Chinese residential buildings

This paper describes a method of identifying and weighting indicators for assessing the energy efficiency of residential buildings in China. A list of indicators of energy efficiency assessment in residential buildings in the hot summer and cold winter zone in China has been proposed, which supplies an important reference for policy makings in energy efficiency assessment in buildings. The research method applies a wide-ranging literature review and a questionnaire survey involving experts in the field. The group analytic hierarchy process (group AHP) has been used to weight the identified indicators. The size of survey samples are sufficient to support the results, which has been validated by consistency estimation. The proposed method could also be extended to develop the weighted indicators for other climate zones in China.     

Theory-based policy evaluation of 20 energy efficiency instruments

Realizing a 20% energy efficiency improvement in Europe by 2020 requires the introduction of good new energy efficiency policies as well as strengthening and enforcing the existing policies. This raises the question: what characterizes good and effective energy efficiency policies and their implementation? Systematic ex post evaluation of energy efficiency policies can reveal factors determining not only what works and what does not but also explain why. Ex post evaluation of 20 energy efficiency policy instruments applied across different sectors and countries in Europe among others showed that ex post evaluation does not yet have a high priority among policy makers: Often, quantitative targets and clear timeframes are lacking, and monitoring information is not collected on a regular basis. Our analysis, however, did reveal some general factors in the process of design and implementation of policy instruments that appear as important including (1) existence of clear goals and a mandate for the implementing organization, (2) the ability to balance and combine flexibility and continuity, (3) the involvement of stakeholders, and (4) the ability to adapt to and integrate adjacent policies or develop consistent policy packages. The analysis was performed using a uniform methodology called “theory-based policy evaluation”. The general principle behind this approach is that a likely theory is drawn up on the program’s various steps of logic of intervention to achieve its targeted impact in terms of energy efficiency improvement. The approach has several benefits over other ex post evaluation methods because (1) the whole policy implementation process is evaluated and the focus is not just on the final impacts, (2) through the development of indicators for each step in the implementation process, the “successes and failures” can be determined to the greatest extent possible, and (3) by applying this approach, we not only learn whether policies are successful or not but also why they succeeded or failed and how they can be improved.     

End-use energy utilization efficiency of Nigerian residential sector

In this paper, the end-use efficiencies of the different energy carriers and the overall energy efficiency in the Nigerian residential sector (NRS) were estimated using energy and exergy analysis. The energy and exergy flows were considered from 2006 to 2011. The overall energy efficiency ranges from 19.15% in 2006 to 20.19% in 2011 with a mean of (19.96±0.23)% while the overall exergy efficiency ranges from 4.34% in 2006 to 4.40% in 2011 with a mean of (4.31±0.059)%. The energy and exergy efficiency margin was 15.58% with a marginal improvement of 0.07% and 0.02%, respectively when compared with previous results. The contribution of the energy carriers to the total energy and exergy inputs were 1.45% and 1.43% for electricity, 1.95% and 3% for fossil fuel and 96.6% and 95.57% for bio-fuel. The result shows that approximately 65% of the residence use wood and biomass for domestic cooking and heating, and only a fraction of the residence have access to electricity. LPG was found to be the most efficient while kerosene, charcoal, wood and other biomass the least in this order. Electricity utilization exergy efficiency is affected by vapor-compression air conditioning application apart from low potential energy applications. In addition, this paper has suggested alternatives in the end-use application and has demonstrated the relevance of exergy analysis in enhancing sustainable energy policies and management and improved integration techniques.     

Evaluation of the effectiveness of an energy efficiency program for new home construction in eastern North Carolina

This paper reports on the evaluation of the effectiveness of an energy efficiency program in eastern North Carolina. This subject program is focused on improved construction methods for residential housing. The program incorporates proven energy saving technologies, construction procedures, onsite inspections, and design construction methodologies in new residential construction. The analysis compared the energy usage associated with the houses built in conjunction with the energy efficiency program (test group) with similar new residential construction unrelated to the program (control group). Several statistical methods were employed to establish differences between the energy efficiency program participants and the control group. The analysis provides significant support for the effectiveness of this energy efficiency program and supports the suitability of similar efforts for inclusion in plans for renewable energy offsets and energy efficiency standards.     

An analysis of energy conservation possibilities in the residential sector in New Zealand

A model which simulates residential energy use in New Zealand until the year 2000 has been developed. This paper describes some of the energy conservation possibilities and their effect on energy use for space and water heating. an engineering analysis made to determine the effect of various factors on energy use for space heating is first described. the information gained from many computer simulations is used to develop a quantitative relationship between space heating energy and major determinants—climatic location, building type and intensity of use. Results from an engineering analysis of a water heating unit are used to establish the energy savings due to improved cylinder insulation and lower storage temperature. A solar space and water heating system is analysed to determine the fraction of total heating load that can be met by harnessing solar energy. the analyses demonstrate that the potential of conservation measures to reduce energy use can be substantial—by raising the insulation level on the building and on the water heating cylinder, by lowering the water storage temperature, and by installing an optimized solar heating system, the energy requirement can be reduced to 0·37 times what it is today for a typical uninsulated home.     

Comparison of neural network,conditional demand analysis,and engineering approaches for modeling end-use energy consumption in the residential sector

This paper investigates the use of conditional demand analysis (CDA) method to model the residential end-use energy consumption at the national level. There are several studies where CDA was used to model energy consumption at the regional level; however the CDA method had not been used to model residential energy consumption at the national level. The prediction performance and the ability to characterize the residential end-use energy consumption of the CDA model are compared with those of a neural network (NN) and an engineering based model developed earlier. The comparison of the predictions of the models indicates that CDA is capable of accurately predicting the energy consumption in the residential sector as well as the other two models. The effects of socio-economic factors are estimated using the NN and the CDA models, where possible. Due to the limited number of variables the CDA model can accommodate, its capability to evaluate these effects is found to be lower than the NN model.     

Energy engenderment: An industrialized perspective assessing the importance of engaging women in residential energy consumption management

This study assesses gender role and participation in energy utilization at the residential household level in an advanced industrial country setting. Two hundred and twenty one (221) standardized surveys of single-family residential households in San Antonio, Texas – the seventh largest city in the United States of America – are collected and used as a test case. The objective is to highlight the role of women in improving household energy efficiency. By coupling the behavioral and analytical sciences, studies such as this one provide better insight for the effective deployment of targeted energy efficiency programs that can benefit both households and municipalities while reducing impact on environmental resources. Study conclusions highlight 80% higher per capita consumption in female dominant households versus male dominant households (p=0.000) driven by approximately double the gas consumption in female-headed households (p=0.002), and 54% more electric usage (p=0.004). The higher use in female dominant homes is examined through the socio-demographic impacts of education, income, vintage of home occupied and size of home occupied. The theoretical framework and test case presented in this study promote the need for market segmented energy efficiency initiatives that better engage women in energy demand-side management in industrialized populated cities.     

Electricity end-uses in the residential sector of Brazil

The residential energy consumption has been studied in many countries as it usually accounts for a large percentage of the total energy consumption. Energy end-uses have also been a matter of concern as they can assist energy system planning. The objective of this paper is to assess the actual scenario of electricity consumption and estimate electricity end-uses in the residential sector of Brazil for different bioclimatic zones. The analysis is based on a survey performed by 17 energy utilities enclosing a total of 17,643 houses or flats over 12 states in Brazil. The survey was performed to obtain electricity consumption data for all household appliances found in houses and flats. The electricity end-uses were estimated by performing weighted averages according to the location of the dwellings in each bioclimatic zone. Results indicate that the largest end-uses are for refrigerator and freezer together, which account for about 38–49% of the electricity consumption in dwellings in Brazil. Air-conditioning and electric shower are the end-uses that are more dependent on the climatic conditions. The main conclusion that can be made from the analysis is that air-conditioning should be a major concern in the residential sector of Brazil in the near future as its ownership is still low, but its electricity consumption is already significant mainly over summer.     

Evaluating public policy instruments in the Greek building sector

This paper applies a multi-criteria analysis (MCA) to evaluate public policy mechanisms that foster energy efficiency and renewable energy sources in the Greek building sector, based on stakeholders’ understanding and perceptions of the functionality of policy instruments. The objective is to shed light on the implementation of currently employed policy mechanisms that aim to achieve the 2020 energy savings targets and beyond, providing useful information to policy makers for future policy (re-) formulations. In this framework, policy instruments were evaluated against process-related criteria, such as implementation costs, distributional effects, and coherence of policy processes, so as to highlight successful policy practices during their implementation phase as well as to unveil cases of policy underperformance or unintended policy outcomes. To hedge uncertainties related to policy instrument selection, the method employs probabilistic evaluations of every alternative against each criterion. The MCA results showed that the country is still missing significant energy saving opportunities that could be reached through more streamlined implementation practices and political support. In times of fiscal crisis, the Greek government should also revitalize the implementation of alternative funding mechanisms and support policy alternatives such as green public procurement, voluntary agreements, and energy performance contracting.     

Analysis of residential energy use

The structure, inputs, validation and operation of a residential energy use model are examined with the intention of providing an analytical tool for evaluation of energy conservation option for effects on energy use and related costs.     

On policy instruments for support of micro combined heat and power

The performance of residential micro combined heat and power (micro-CHP)—a technology to provide heat and some electricity to individual dwellings—is generally dependent on the magnitude of household thermal energy demand. Dwellings with larger and more consistent thermal consumption perform well economically and achieve greater greenhouse gas emissions savings. Consequently, the performance of micro-CHP is dependent on the level of thermal insulation in a dwelling. Therefore, emerging policy approaches regarding energy use in the residential sector, which generally support both energy efficiency measures such as thermal insulation and adoption of micro-CHP, may inadvertently incentivise micro-CHP installation where CO₂ reductions are meagre or not cost-effective. This article examines this issue in terms of the changes in economic and environmental performance that occur for three micro-CHP technologies under changing patterns of residential thermal insulation in the United Kingdom. The results of this analysis are used to comment on the structure of policy instruments that support micro-CHP. It is found that simultaneous support for energy efficiency measures and micro-CHP can be justified, but care must be taken to ensure that the heat-to-power ratio and capacity of the micro-CHP system are appropriate for the expected thermal demand of the target dwelling.     

Prioritizing investment in residential energy efficiency and renewable energy—A case study for the U.S. Midwest

Residential building energy use is an important contributor to greenhouse gas emissions and in the United States represents about 20% of total energy consumption. A number of previous macro-scale studies of residential energy consumption and energy-efficiency improvements are mainly concerned with national or international aggregate potential savings. In this paper we look into the details of how a collection of specific homes in one region might reduce energy consumption and carbon emissions, with particular attention given to some practical limits to what can be achieved by upgrading the existing residential building stock. Using a simple model of residential, single-family home construction characteristics, estimates are made for the efficacy of (i) changes to behavioral patterns that do not involve building shell modifications; (ii) straightforward air-infiltration mitigation measures, and (iii) insulation measures. We derive estimates of net lifetime savings resulting from these measures, in terms of energy, carbon emissions and dollars. This study points out explicitly the importance of local and regional patterns in decision-making about what fraction of necessary regional or national emissions reduction might be accomplished through energy-efficiency measures and how much might need to concentrate more heavily on renewable or other carbon-free sources of energy.     

Warm homes: Drivers of the demand for heating in the residential sector in New Zealand

New Zealand houses are large, often poorly constructed and heated, by OECD standards, and consequently are colder and damper indoors than recommended by the World Health Organisation. This affects both the energy consumption and the health of households. The traditional New Zealand household pattern of only heating one room of the house has been unchanged for decades, although there has been substantial market penetration of unflued gas heaters and more recently heat pumps. This paper describes the residential sector and the results of two community-based trials of housing and heating interventions that have been designed to measure the impact of (1) retrofitting insulation and (2) replacing unflued gas heaters and electric resistance heaters with heat pumps, wood pellet burners and flued gas heaters. The paper describes findings on the rebound effect or ‘take-back’—the extent to which households take the gains from insulation and heating improvements as comfort (higher temperatures) rather than energy savings, and compares energy-saving patterns with those suggested by an earlier study. Findings on these aspects of household space heating are discussed in the context of the New Zealand government's policy drive for a more sustainable energy system, and the implications for climate change policy.