Analysis and take-aways on the household level (micro level analysis)
The detailed results from the (micro level) survey themselves can help policy makers design more effective programmes and tools for implementing energy efficiency in households.
- BRISKEE has shown which of the factors underlying the Implicit Discount Rate (IDR) are related with energy efficient technology adoption. It focuses on time and risk preferences but also identified external barriers.
- The results indicate, how reactive policies could be designed to take into account the characteristics of different groups, e.g. low-income households, more risk-averse or more impatient individuals.
Both the technology and the attitudes matters. For technology, consumers in the 2016 survey concluded that:
- For appliances, technical performance is found to be the most important criterion for purchase decisions, followed closely by purchase price, energy cost and energy label.
- For lighting, energy cost is found to be the most important criterion, closely followed by performance and energy label. As opposed to appliance purchases, the purchase price does not play such an important role for lighting.
- For building improvements, performance, energy costs, indoor comfort and investment costs are the most relevant criteria.
Addressing different segments, the following will help make programmes more efficient:
- For households that are less patient and want money back sooner(“higher present bias”), create programmes with less up-front outlays. For instance, rebates are more efficient than tax breaks, and low-interest loans are appealing to those households.
- Risk- and loss-aversehouseholds like energy performance contracting. These households are vulnerable to changes in energy prices, so it is good to highlight the “asset character” of investment in energy efficiency. Present failures to invest in energy efficiency as a loss rather than as a missed opportunity to those households.
- Households who care about the environments want to see the environmental benefits of energy efficiency (e.g., through labels).
- For some households, strong pro energy efficiency social norms are effective, and campaigns might explore social comparisons and the shaping of pro energy efficiency social norms.
- Renters are less likely than owners to retrofit their dwelling. Building performance certificates are effective, as are systems that pass on the extra costs of retrofitting a dwelling.
- Households without electricity meters are less likely to adopt energy efficient technologies. Here, promote individual metering would be effective.
- Households with limited access to capital are less likely to invest in energy efficiency. Low interest loans, rebates and energy performance contracting can help.