Modelling energy retrofit investments in the UK housing market

2015 ◽  
Vol 4 (3) ◽  
pp. 251-267 ◽  
Author(s):  
Hassan Adan ◽  
Franz Fuerst
Keyword(s):  
Energy Efficiency ◽  
Housing Market ◽  
Empirical Test ◽  
Investment Decision ◽  
Property Market ◽  
Content Type ◽  
Energy Efficiency Measures ◽  
Energy Retrofit ◽  
Efficiency Measures ◽  
The Uk

Purpose – Improving the energy efficiency of the existing residential building stock has been identified as a key policy aim in many countries. The purpose of this paper is to review the extant literature on investment decisions in domestic energy efficiency and presents a model that is both grounded in microeconomic theory and empirically tractable. Design/methodology/approach – This study develops a modified and extended version of an existing microeconomic model to embed the retrofit investment decision in a residential property market context, taking into account tenants’ willingness to pay and cost-reducing synergies. A simple empirical test of the link between energy efficiency measures and housing market dynamics is then conducted. Findings – The empirical data analysis for England indicates that where house prices are low, energy efficiency measures tend to increase the value of a house more in relative terms compared to higher-priced regions. Second, where housing markets are tight, landlords and sellers will be successful even without investing in energy efficiency measures. Third, where wages and incomes are low, the potential gains from energy savings make up a larger proportion of those incomes compared to more affluent regions. This, in turn, acts as a further incentive for an energy retrofit. Finally, the UK government has been operating a subsidy scheme which allows all households below a certain income threshold to have certain energy efficiency measures carried out for free. In regions, where a larger proportion of households are eligible for these subsidies,the authors also expect a larger uptake. Originality/value – While the financial metrics of retrofit measures are by now well understood, most of the existing studies tend to view these investments in isolation, not as part of a larger bundle of considerations by landlords and owners of how energy retrofits might influence a property’s rent, price and appreciation rate. In this paper, the authors argue that establishing this link is crucial for a better understanding of the retrofit investment decision.

Analyzing the “energy-efficiency gap”

2017 ◽  
Vol 10 (2) ◽  
pp. 66-88 ◽  
Author(s):  
Kanupriya Bhardwaj ◽  
Eshita Gupta
Keyword(s):  
Energy Efficiency ◽  
Negative Impact ◽  
High Income ◽  
Primary Data ◽  
Content Type ◽  
Household Level ◽  
Energy Efficiency Measures ◽  
Energy Efficiency Gap ◽  
Efficiency Measures ◽  
Efficiency Gap

Purpose The key purpose of this paper is to quantify the size of the energy-efficiency gap (EEG) for air conditioners at the household level in Delhi. Most of the studies in the EEG tradition broadly define EEG as the difference between the actual and optimal level of energy efficiency. The optimal level of energy efficiency is defined at the societal level (that weigh social costs against social benefits) and the private level (that weigh private costs against private benefits). Design/methodology/approach The authors base the empirical results in this study on the basis of the primary data collected through in-person interviews of the high-income urban households in Delhi in 2014-2015. The sample of 101 households was collected through purposive random sampling. The survey data include information on type and number of AC possessed, hours of operations, socioeconomic characteristics and awareness and habits of households. Findings Using primary data of 101 high-income urban household, the paper finds that average EEG is about 10 per cent of total electricity demand of ACs at the household level. The maximum current saving potential measured as a difference between hypothetical energy consumption, if everyone adopts five star ACs, and actual energy consumption is estimated about 14 per cent of the total electricity demand of ACs. Results from the ordinary least squares regressions demonstrate that individual’s habits, attitude, awareness of energy-efficiency measures and perceptions significantly determine the size of the EEG. Among other things, authors’ empirical analysis shows that information can play a central role in guiding investment in energy-efficient technologies. From the analysis of improving access to understandable information about cost savings, payback period and emission reduction, it is found that full information leads to the significant reduction in the size of the expected private energy-efficiency gap from 10 to 2.98 per cent at the household level. Research limitations/implications This paper tests the significance of non-economic and non-social factors in determining the size of the EEG. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households. Originality/value In this study, authors try to estimate the size of the EEG of ACs for the high-income urban households in Delhi. The private energy-efficiency gap estimated at 10 per cent of the household demand for ACs indicates existing saving opportunity for the private households. It is found that provision of comprehensive information about cost savings, payback period and emission reduction reduces the size of the EEG significantly from 10 to 2.72 per cent at the private level. This highlights the existence of limited and incomplete information in the market about the possible costs and benefits of energy-efficiency investments. This paper tests the significance of non-economic and non-social factors in determining the size of the energy-efficiency gap. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households.

scholarly journals How long is UK property cycle?

2017 ◽  
Vol 35 (4) ◽  
pp. 410-426 ◽  
Author(s):  
Arvydas Jadevicius ◽  
Simon Hugh Huston
Keyword(s):  
Investment Decision ◽  
Future Market ◽  
Cycle Duration ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
Novel Approach ◽  
Investment Decision Making ◽  
Step Algorithm ◽  
The Uk

Purpose The purpose of this paper is to assess the duration of the UK commercial property cycles, their volatility and persistence to gauge future market direction. Design/methodology/approach The study employs a novel approach to dissect cycles in a form of a three-step algorithm. First, the Hodrick-Prescott de-trends the selected variables. Second, volatility (measured by the variance) screens periods of atypical fluctuations in the series. Finally, the series is regressed against its past values to assess the level of persistence. The sequential steps screen the length of the cycles in UK commercial property market to facilitate interpretation. Findings The estimates suggest that UK commercial property market follows an eight-year cycle. Combined modelling results indicate that the current market trend is likely to change over the coming year. The modelling suggests increasing probability of a market correction in late 2016/early 2017. Practical implications This updated appreciation of the UK commercial property cycle duration allows for better market timing and investment decision making. Originality/value The paper adds additional evidence on the contested issue of UK commercial property cycle duration.

scholarly journals Impact of Passive Energy Efficiency Measures on Cooling Energy Demand in an Architectural Campus Building in Karachi, Pakistan

2021 ◽  
Vol 13 (13) ◽  
pp. 7251
Author(s):  
Mushk Bughio ◽  
Muhammad Shoaib Khan ◽  
Waqas Ahmed Mahar ◽  
Thorsten Schuetze
Keyword(s):  
Energy Efficiency ◽  
Energy Demand ◽  
Electricity Consumption ◽  
Information Modeling ◽  
Base Case ◽  
Energy Efficiency Measures ◽  
Efficiency Measures ◽  
The Impact ◽  
Cooling Energy Demand ◽  
Campus Building

Electric appliances for cooling and lighting are responsible for most of the increase in electricity consumption in Karachi, Pakistan. This study aims to investigate the impact of passive energy efficiency measures (PEEMs) on the potential reduction of indoor temperature and cooling energy demand of an architectural campus building (ACB) in Karachi, Pakistan. PEEMs focus on the building envelope’s design and construction, which is a key factor of influence on a building’s cooling energy demand. The existing architectural campus building was modeled using the building information modeling (BIM) software Autodesk Revit. Data related to the electricity consumption for cooling, building masses, occupancy conditions, utility bills, energy use intensity, as well as space types, were collected and analyzed to develop a virtual ACB model. The utility bill data were used to calibrate the DesignBuilder and EnergyPlus base case models of the existing ACB. The cooling energy demand was compared with different alternative building envelope compositions applied as PEEMs in the renovation of the existing exemplary ACB. Finally, cooling energy demand reduction potentials and the related potential electricity demand savings were determined. The quantification of the cooling energy demand facilitates the definition of the building’s electricity consumption benchmarks for cooling with specific technologies.

scholarly journals Future Greener Seaports: A Review of New Infrastructure, Challenges, and Energy Efficiency Measures

IEEE Access ◽  
2021 ◽  
pp. 1-1
Author(s):  
Muhammad Sadiq ◽  
Syed Wajahat Ali ◽  
Yacine Terriche ◽  
Muhammad Umair Mutarraf ◽  
Mustafa Alrayah Hassan ◽  
...  
Keyword(s):  
Energy Efficiency ◽  
Energy Efficiency Measures ◽  
Efficiency Measures ◽  
New Infrastructure

scholarly journals A review of Energy Efficiency Measures Within Electric Motors Systems

2019 ◽  
Vol 158 ◽  
pp. 3346-3351 ◽  
Author(s):  
Andrea Trianni ◽  
Enrico Cagno ◽  
Davide Accordini
Keyword(s):  
Energy Efficiency ◽  
Electric Motors ◽  
Energy Efficiency Measures ◽  
Efficiency Measures

scholarly journals Only non-energy benefits from the adoption of energy efficiency measures? A novel framework

2019 ◽  
Vol 212 ◽  
pp. 1319-1333 ◽  
Author(s):  
Enrico Cagno ◽  
Davide Moschetta ◽  
Andrea Trianni
Keyword(s):  
Energy Efficiency ◽  
Energy Efficiency Measures ◽  
Efficiency Measures
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