Marketing energy efficiency: perceived benefits and barriers to home energy efficiency

Energy efficiency contributes significantly to the reduction of greenhouse gas emissions and the associated mitigation of climate change. The uptake of energy efficiency measures in the residential sector requires significant effort on the part of homeowners or residents. Past research has revealed that cost savings and social interaction motivate energy efficiency behavior. This study expands on this research by examining the hypothesis that there are regional differences in what motivates individuals to implement home energy efficiency upgrades. Two surveys (N?=?320 and N?=?423) examine the perceived benefits of and barriers to undertaking home energy efficiency improvements in varying geographic regions across the USA and test marketing materials that target these benefits and barriers. The hypothesis that there are regional differences in perceptions of energy efficiency was confirmed. Cost savings were found to be the most important benefit to individuals across the country. Energy efficiency being a good investment is either the second or third most important benefit across all regions. Increased comfort is the last of the top three most important benefits to those in the South and Midwest, while those in the Northeast demonstrated interest in the increase in home retail value associated with energy efficiency, and those in the West found the environmental benefits to be important. High costs of energy efficiency improvements were found to be the most commonly perceived barrier. Reported likelihood to enroll in a home energy efficiency program offered by one’s employer was predicted by perceived likelihood that coworkers would enroll, income level, and personal opinions about the importance of energy efficiency.     

Energy slices: benchmarking with time slicing

Benchmarking makes it possible to identify low-performing buildings, establishes a baseline for measuring performance improvements, enables setting of energy conservation targets, and encourages energy savings by creating a competitive environment. Statistical approaches evaluate building energy efficiency by comparing measured energy consumption to other similar buildings typically using annual measurements. However, it is important to consider different time periods in benchmarking because of differences in their consumption patterns. For example, an office can be efficient during the night, but inefficient during operating hours due to occupants’ wasteful behavior. Moreover, benchmarking studies often use a single regression model for different building categories. Selecting the regression model based on actual data would ensure that the model fits the data well. Consequently, this paper proposes Energy Slices, an energy benchmarking approach with time slicing for existing buildings. Time slicing enables separation of time periods with different consumption patterns. The regression model suited for the specific scenario is selected using cross validation, which ensures that the model performs well on previously unseen data. The evaluation is carried out on a case study involving two sports arenas; event energy efficiency is benchmarked to identify low-performing events. The case study demonstrates the Energy Slice procedure and shows the importance of model selection.     

Cost-benefit analysis of domestic energy efficiency

There are a number of driving forces behind energy efficiency. In recent times, the Kyoto Protocol has been the most prominent in bringing energy efficiency to the fore. In some countries, the domestic sector has been highlighted as an area which has a significant potential for improvement. However, prior to the implementation of large-scale energy-efficiency programmes, it is important to evaluate whether they make economic sense. Heretofore, most economic evaluations of energy-efficiency programmes have concentrated purely on the associated costs of the programmes and the energy savings that result. At best, reductions in environmental benefits are also estimated, but rarely are other benefits calculated, such as increases in the levels of household comfort and improvements in human health. This paper endeavours to provide a template for ex ante economic evaluations of domestic energy-efficiency programmes. A comprehensive cost–benefit analysis of a programme to retrofit various energy-efficiency technologies and heating upgrades to the Irish dwelling stock is taken as a case study. The study demonstrates how energy savings, environmental benefits, and health and comfort improvements may be assessed. In so doing, it provides insights into the methodological difficulties and solutions for assessing the social efficiency of large-scale domestic energy-conservation projects.     

Building energy information systems: synthesis of costs,savings, and best-practice uses

Building energy information systems (EIS) are a powerful customer-facing monitoring and analytical technology that can enable up to 20 % site energy savings for buildings. Few technologies are as heavily marketed, but in spite of their potential, EIS remain an underadopted emerging technology. One reason is the lack of information on purchase costs and associated energy savings. While insightful, the growing body of individual case studies has not provided industry the information needed to establish the business case for investment. Vastly different energy and economic metrics prevent generalizable conclusions. This paper addresses three common questions concerning EIS use: what are the costs, what have users saved, and which best practices drive deeper savings? We present a large-scale assessment of the value proposition for EIS use based on data from over two-dozen organizations. Participants achieved year-over-year median site and portfolio savings of 17 and 8 %, respectively; they reported that this performance would not have been possible without the EIS. The median 5-year cost of EIS software ownership (up-front and ongoing costs) was calculated to be $1800 per monitoring point (kilowatt meter points were most common), with a median portfolio-wide implementation size of approximately 200 points. In this paper, we present an analysis of the relationship between key implementation factors and achieved energy reductions. Extent of efficiency projects, building energy performance prior to EIS installation, depth of metering, and duration of EIS were strongly correlated with greater savings. We also identify the best practices use of EIS associated with greater energy savings.     

Energy savings potential from improved building controls for the US commercial building sector

The US Department of Energy (DOE) sponsored a study to determine the national savings achievable in the commercial buildings through widespread deployment of controls, elimination of faults, and use of better sensing. The study estimated savings from 34 measures in 9 building types and across 16 climates. These buildings are responsible for almost 57% of the US commercial building sector energy consumption. In addition to the individual measures, three packages of measures were created to estimate savings: (1) efficient building, (2) typical building, and (3) inefficient building. The results showed significant potential for energy savings across all building types and climates. The total site potential savings by building type aggregated across all climates for each measure varied between 0 and 16%. The total site potential savings aggregated across all building types and climates for each measure varied between 0 and 11%. The national potential site energy savings across all building types studied is 29%. Across all building types, the savings represent approximately 1393 PJ (1.32 quads) of site energy savings or 2912 PJ (2.76 quads) of primary (or source) energy savings. Extrapolating the results for other building types not analyzed as part of this study, the primary energy savings could be in the range of 4220 to 5275 PJ. For comparison, the total US primary energy consumption across all sectors of energy use was 102,762 PJ (97.4 quads) in 2015. This makes commercial building control improvements strategically important to sustained reductions in national energy consumption. To realize most of this potential savings, many gaps can be addressed through research development and deployment (RD&D), as recommended in this paper.     

Rethinking economy-wide rebound measures: An unbiased proposal

In spite of having been first introduced in the last half of the ninetieth century, the debate about the possible rebound effects from energy efficiency improvements is still an open question in the economic literature. This paper contributes to the existing research on this issue proposing an unbiased measure for economy-wide rebound effects. The novelty of this economy-wide rebound measure stems from the fact that not only actual energy savings but also potential energy savings are quantified under general equilibrium conditions. Our findings indicate that the use of engineering savings instead of general equilibrium potential savings downward biases economy-wide rebound effects and upward-biases backfire effects. The discrepancies between the traditional indicator and our proposed measure are analysed in the context of the Spanish economy.     

Quantifying the rebound effects of energy efficiency improvements and energy conserving behaviour in Sweden

Doubts have recurrently been raised on the extent to which energy efficiency can reduce the demand for energy. Improvements in efficiency may cause so-called rebound effects by reducing the prices of energy services as well as by increasing the budget for consumption of other goods and services. The magnitude of such effects is crucial to whether energy efficiency should be a strategy for environmental policy or not. This paper aims to derive a general expression of the rebound effects of household consumption in a parameterised form where available data can be tested. The paper analyses how different parameter assumptions affect the quantification of rebound effects and what may be reasonable ranges. Income effects are quantified using data from the Swedish Household Budget Survey of different goods and services split on income classes. The changes in consumption patterns with increasing income are used to establish the composition of marginal consumption. Combined with energy intensities derived from input–output analysis, this gives a model of how money saved on energy use in one sector may lead to increased energy use in other sectors. The total rebound effects of energy efficiency improvements appear to be in the range 5–15% in most cases, but these results are fairly sensitive to assumptions of energy service price elasticities. Cases with low or negative capital costs for energy efficiency improvements may also result in much higher rebound effects as the income effects become more important. Energy-conserving behaviour (reduced energy service demand) affecting direct energy use such as heating and transport gives rise to rebound effects in the order of 10–20%, depending on the household expenditure per primary energy for different fuels and energy carriers.     

Interaction effects of energy efficiency policies: a review

Increasing energy efficiency and savings will play a key role in the achievement of the climate and energy targets in the European Union (EU). To meet the EU’s objectives for greenhouse gas emission reductions, renewable energy use and energy efficiency improvements, its member states have implemented and will design and implement various energy policies. This paper reviews a range of scientific articles on the topic of policy instruments for energy efficiency and savings and evaluates the strengths and weaknesses of different measures. The review demonstrates the variety of possible instruments and points to the complex policy environment, in which not a single instrument can meet the respective energy efficiency targets, but which requires a combination of multiple instruments. Therefore, the paper in particular focuses on assessing potential interactions between combinations of energy efficiency policies, i.e. the extent to which the different instruments counteract or support one another. So far, the literature on energy efficiency policy has paid only limited attention to the effect of interacting policies. This paper reviews and analyses interaction effects thus far identified with respect to factors that determine the interaction. Drawing on this review, we identify cases for interaction effects between energy efficiency policies to assess their potential existence systematically and to show future research needs.     

Modeling energy efficiency investment choices – a case study on Croatia’s residential sector

This article presents a methodological approach for incorporating household consumption characteristics and investment choices into energy efficiency policy models. The approach used is based on country-level stated preferences survey for evaluating consumer decisions and attitudes toward energy efficiency. The decision-making process was analyzed and modeled with logistic regression and applied onto the existing single-family housing stock. By applying the described framework, policymakers, or any other subsidy providing authority aiming to reach specific energy savings target, can obtain the distribution of financial incentives among different income classes. The developed model provides a framework for cost minimization and energy saving maximization. The model provides the minimal level of subsidies needed to achieve energy savings goals or maximum level of energy savings possible with a predefined budget for energy subsidies. The model accounts for consumer disaggregation and all results are provided per expenditure groups.     

Projected regional impacts of appliance efficiency standards for the US residential sector

Minimum efficiency standards for residential appliances have been implemented in the US for a large number of residential end-uses. This analysis assesses the potential energy, dollar, and carbon impacts of those standards at the state and national levels. We explicitly account for improvements in efficiency likely to occur in the absence of standards, but because our method for characterizing these exogenous improvements probably overestimates them, both the energy and cost savings presented in this article represent lower bounds to the true benefits. Cumulative present-valued dollar savings after subtracting out the additional cost of the more efficient equipment are about $30 billion from 1990 to 2010. Each dollar of federal expenditure on implementing the standards will contribute $165 of net present-valued savings to the US economy over the 1990 to 2010 period. Average benefit/cost ratios for these standards are about 3.5 for the US as a whole. Projected carbon reductions are approximately 9 million metric tons of carbon per year in the years from 2000 to 2010. Because these standards save energy at a cost less than the price of that energy, the resulting carbon emission reductions are achieved at negative net cost to society.     

Life-cycle energy analysis of building integrated photovoltaic systems (BiPVs) with heat recovery unit

Building integrated photovoltaic (BiPV) systems generate electricity, but also heat, which is typically wasted and also reduces the efficiency of generation. A heat recovery unit can be combined with a BiPV system to take advantage of this waste heat, thus providing cogeneration. Two different photovoltaic (PV) cell types were combined with a heat recovery unit and analysed in terms of their life-cycle energy consumption to determine the energy payback period. A net energy analysis of these PV systems has previously been performed, but recent improvements in the data used for this study allow for a more comprehensive assessment of the combined energy used throughout the entire life-cycle of these systems to be performed. Energy payback periods between 4 and 16.5 years were found, depending on the BiPV system. The energy embodied in PV systems is significant, emphasised here due to the innovative use of national average input–output (I–O) data to fill gaps in traditional life-cycle inventories, i.e. hybrid analysis. These findings provide an insight into the net energy savings that are possible with a well-designed and managed BiPV system.     

Renewable energy strategies for sustainable development

This paper discusses the perspective of renewable energy (wind, solar, wave and biomass) in the making of strategies for a sustainable development. Such strategies typically involve three major technological changes: energy savings on the demand side, efficiency improvements in the energy production, and replacement of fossil fuels by various sources of renewable energy. Consequently, large-scale renewable energy implementation plans must include strategies for integrating renewable sources in coherent energy systems influenced by energy savings and efficiency measures. Based on the case of Denmark, this paper discusses the problems and perspectives of converting present energy systems into a 100% renewable energy system. The conclusion is that such development is possible. The necessary renewable energy sources are present, and if further technological improvements of the energy system are achieved the renewable energy system can be created. Especially technologies of converting the transportation sector and the introduction of flexible energy system technologies are crucial.     

Analysis of advanced energy chain typologies

A method for estimating the effectiveness and CO₂ emissions of advanced energy conversion systems from primary to final energy is presented. A traditional condensing power plant for electricity production and a fuel boiler for heat production based on natural gas were used as the reference system. Several potentially better energy chains were analysed including CHP, tri‐generation, heat pumps and efficiency improvements in final energy use. All above solutions could provide clear reductions in primary energy use and emissions, in most cases tens of per cents, but the results are sensitive to operational conditions. In a heat pump system, the primary energy savings are considerable but emission reductions may turn out to be marginal or even negative whereas in co‐generation the emission reductions are higher than energy savings. Striving for high conversion efficiencies would ensure sustained benefits from the advanced energy chain typologies over the reference system even in the less favourable cases. Copyright © 2007 John Wiley & Sons, Ltd.     

Behavioral energy feedback program evaluations: a survey of current knowledge and a call to action

Behavioral-based energy efficiency programs are those that utilize strategies intended to influence consumer energy use behaviors to achieve energy and/or peak demand savings. These programs typically include outreach, education, competition, rewards, benchmarking, and/or feedback elements (Todd et al 2012). In North America, over 110 investor-owned utilities included behavior programs in 2012 as part of their energy efficiency portfolios, allocating 0.3 to 10 % of their efficiency portfolio spending to these programs. Emerging plans in Massachusetts allocated as much as 50 % of first year kilowatt hour goals to behavior programs in 2014. Despite the overwhelming growth in spending on these programs, there are many unanswered and important policy questions that must be addressed. This paper argues that the energy industry needs to go further than just assessing energy impacts to address existing gaps in knowledge and find ways to most effectively incorporate these programs into efficiency portfolios. First, the paper presents an overview of behavioral feedback program lessons learned from third party evaluations across North America. Next, a brief analysis of gaps in industry knowledge of how behavioral programs generate savings is provided. In the last section, policy- and planning-focused research questions that need to be answered as behavioral feedback programs mature are discussed. To date, there has been an overwhelming focus on impact evaluations, and there are many key questions that need to be addressed. Future evaluations must focus on both impact and policy questions by addressing existing gaps in knowledge about how behavioral programs generate energy savings and exploring the most effective ways to integrate these programs into program portfolios.     

Polices for increasing energy efficiency: Thirty years of experience in OECD countries

Energy efficiency improvement was an important phenomenon in the global energy balance over the past 30 years. Without energy efficiency improvements, the OECD nations would have used approximately 49% more energy than was actually consumed as of 1998. This paper first reviews energy intensity trends for the major OECD nations since 1973, considering how much of the overall reduction in E/GDP was due to energy efficiency improvement and how much was due to structural change. The bulk of the paper examines the energy efficiency policies and programs adopted in Japan, United States, and Western Europe, commenting on their effectiveness and energy savings impacts where possible. The paper also reviews the energy efficiency policies and programs adopted in California. This experience shows that well-designed policies can result in substantial energy savings, as demonstrated in the United States where nine specific policies and programs reduced primary energy use in 2002 by approximately 11%. Substantial energy savings also occurred in Japan, some European countries, and in the electricity sector in California.     

Do vehicle efficiency improvements lead to energy savings? The rebound effect in Great Britain

Fuel efficiency improvements in vehicles reduce the cost of travel, which could stimulate drivers to travel further limiting energy savings. Estimates of this effect, known as the rebound effect, have varied widely, partly due to data constraints and a reliance upon highly aggregated government statistics. This paper instead uses a dataset of over 275 million vehicle roadworthiness tests. The high level of detail in our dataset can reveal, for the first time, how the response to changes in travel costs may differ across types of vehicles and socio-economic areas in Great Britain.We find that the rebound effect in Great Britain is just 4.6%, meaning efficiency improvements are unlikely to stimulate increased mileage in the short-run. We find that larger, less fuel efficient vehicles are more responsive to fuel price changes than smaller vehicles and that drivers in urban areas are more responsive to fuel price changes than drivers in rural areas. Our findings shed light on the effects that policies such as fuel taxation and fuel economy standards may have on vehicle mileage. This has implications for both CO₂ emissions savings and social equity.     

Barriers to improvements in energy efficiency

The growing recognition of the potential energy savings available through improvements in energy efficiency has sparked an increased interest in the actors involved in implementing these improvements and the barriers that they can encounter. This paper identifies these actors and creates a topology for the various barriers that hinder their efforts to achieve better energy efficiencies at the very lowest level of the energy consumer to the very highest level of the global financial agencies. The analysis concludes that four essential factors will help facilitate the dissemination of energy-efficiency improvements: relying on combinations of measures for overcoming each barrier to energy efficiency; using combinations of measures at the strategic level; employing policy-assisted, market-oriented mechanisms and promoting technological innovation as a means for achieving improved energy efficiency.     

Multi-regional input–output model for regional energy requirements and CO2 emissions in China

In this study, China is divided into eight economic regions. A multi-regional input–output model for energy requirements and CO₂ emissions in China was established, and employed to perform scenario and sensitivity analysis for each economic region in year 2010 and 2020. Results show that up to year 2020, improvement in energy end-use efficiency for each region could generate intra-regional energy savings. Therefore, continuing efforts should be taken to advance improvements of energy end-use efficiency for each region. At the national level, the effectiveness of inter-regional energy transfers, and efficiency improvements in Central and Northwest regions should be accelerated as much as possible. However, population growth will be an obvious driving force for additional energy requirements and cause greater CO₂ emissions across all regions. This demand will increase with the growth of the economy and improvement in household incomes. Population growth in one region will not only significantly affect energy requirements of the region itself, but also drive up energy requirements of the other regions. During this important period in time when China is making efforts to build a well-rounded society, the basic state policy of family planning should be enforced for each region. Model results indicate that there exists relative error between emissions caused by a region and emissions emitted by that region. Different identification of responsibility will have understandable different impacts on most regions in environmental policy reform.     

Economic analysis of the energy-efficient household appliances and the rebound effect

Many strategies, such as improving energy efficiency, were identified as solutions to reduce energy consumption and carbon emissions. Nonetheless, the presence of a rebound effect could lead to a decrease in potential energy savings and carbon reductions resulting from technological advances in energy consumption. This study focuses on direct and indirect rebound effects on households’ behavior. We examine the situation where consumers demand two types of energy services and explore how their choices are affected by changes in the efficiency of providing these services—and, importantly, the consequent implications for energy use. We employ a (narrowly construed) general equilibrium methodology in an attempt to provide a complete picture of the interactions in play in a theoretically confined setting. We limit the general equilibrium problem to two categories of energy appliances but include consideration of the production side of the equation and consequent budget implications, thus “closing” the system in a general equilibrium sense. We find that rebound magnitudes (both indirect and direct) are large.     

Measurement and verification strategies for energy savings certificates: meeting the challenges of an uncertain world

End-use energy efficiency is a cost-effective and rapidly deployable strategy for significantly reducing greenhouse gas (GHG) emissions and energy costs. Energy savings certificates (ESCs)—instruments assigning the property rights to energy savings or attributes of those savings—are becoming an effective tool for meeting energy savings and GHG targets. The efficacy of ESCs will depend on the market’s ability to (1) verify the amount of savings that they certify along with the uncertainty of those savings (i.e., quantify their value), (2) clearly assign ownership rights to that value (i.e., state exactly who owns what) and (3) efficiently buy and sell those rights between interested parties (i.e., conduct simple transactions). The measurement and verification (M&V) system governing ESCs will critically impact whether these three criteria are satisfied. An M&V system for ESCs requires the fundamental elements of an M&V system for any regulated energy-efficiency program, but must also address more explicitly the above-mentioned criteria. In this paper, the authors discuss the International Performance Measurement and Verification Protocol (IPMVP) and specific elements of an M&V system that address components of an ESC system.