Trigger my motivations and remove my barriers: Latent class analyses of homeowners’ perception about home energy retrofit

Shutong He, Queena K. Qian and Jarry T. Porsius

Energy Policy, 2025, vol. 205, issue C

Abstract: The effectiveness of interventions promoting household energy-efficiency investments depends on the diversity of the target audience. In the context of home energy retrofit, where decision-making is complex and influenced by multiple market and behavioural failures, few studies have rigorously analysed real-world homeowner attitudes and behaviours that enable meaningful policy implications. This study addresses this gap by applying model-based 3-step latent class analyses (LCA) to a sample of 1,011 Dutch homeowners with actual retrofit experience, focusing particularly on various motivations and barriers of home energy retrofit. Five motivation segments and three barrier segments are identified, separately. The motivation segments include balanced motivation homeowners (26.7 %), individual utility maximisers (6.8 %), immediate utility seekers (14.7 %), environmental and immediate utility maximisers (6.3 %), and the environmental-financial sensitive majority (45.4 %). The barrier segments are labelled as balanced financial and feasibility barriers (72.3 %), lack of demand (24.3 %), and prominent non-financial barriers (3.4 %). Both segmentation solutions demonstrate high classification accuracy and meaningful substantive interpretation. Furthermore, the segments for motivations and barriers show only marginal correlations, offering complementary insights. The findings enhance the understanding of homeowner heterogeneity in the energy retrofit market and support the design of more targeted incentives, information, and de-hassling programmes.

Keywords: Energy efficiency; Home energy retrofit; Market segment; Behavioural reasoning; Latent class analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:205:y:2025:i:c:s030142152500206x

DOI: 10.1016/j.enpol.2025.114699

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