POLICY INSIGHTS IN SUMMARY
While CHEETAH is still in a very intensive phase of analysis and modelling, the results from BRISKEE have been presented.
BRISKEE– Behavourial Response to Investment Risk in Energy Efficiency – analysed European household investment behaviour through a large multi-country survey of 15 000 households. Analysis was conducted on three levels: 1) micro – the surveys of actual households and the factors underling the implicit discount rates (IDRs), 2) meso – integrates empirical survey results into energy models using the more realist implicit discount rates, and 3) macro – macroeconomic modelling based on energy models.
It should be noted that the improved understanding of household investment behaviour is not a static input into modelling to make them more accurate, through improved (and lower) discount rate assumption. The understanding of investment behaviour can also help design policies that lower the implicit discount rates.
BRISKEE has established cutting-edge agent-based modelling of energy efficiency investments for the EU. Some conclusions:
- BRISKEE has shown, empirically, how factors underlying the Implicit Discount Rates (IDRs) are related with energy efficient technology adoption, and how these factors relate to individual and household characteristics. These findings can be used to make policy interventions more effective than just relying on average implicit discount rates.
- Well-designed policies can also lower the implicit discount rates (speed up technology adoption).
- Provides a better understanding of how energy-efficient technology adoption is related to low income households across countries.
- It demonstrates that energy demand modelling using Implicit discount rates based on detailed understanding of investment result in lower projected energy demand for the EU than current scenarios.
- However, while the energy demand would be significantly lower, the macro-economic effects are slightly positive up to 2030. More positive macro-economic effects would be realised after 2030.
- The BRISKEE modelling shows that energy efficiency investments have positive impacts on GDP and employment even in conservative (or “classic”) scenarios.
The learn more, please see the final BRISKEE report and summaries of the project. A number of papers also describe the outcomes of various work packages, and more detailed conclusions from BRISKEE can be found under the BRISKEE pages.