Economic analysis of alternative envelope designs for new residences in the United States

Stephen F. Weber

Energy, 1980, vol. 5, issue 1, 63-68

Abstract: An economic evaluation is conducted for selected energy-conservation investments in the envelope design of new single-family housing in the U.S. Alternative investment levels in the four major components of the building envelope are evaluated: 1.(1) attic2.(2) walls3.(3) floor, and4.(4) windows. The analysis is conducted for five cities of widely diverse climate conditions and for the major forms of energy used for heating and cooling in the U.S. For each investment level, the internal rate of return (IRR) is calculated on an incremental basis, that is, in comparison with the next lowest level of investment for that component. This marginal IRR is used to rank alternative levels of investment for all four components so that economically optimal envelope designs can be selected for each city and energy type. Two points of view are considered in the selection of optimal designs: that of an individual homebuyer and that of a public policy planner.

Date: 1980
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:5:y:1980:i:1:p:63-68

DOI: 10.1016/0360-5442(80)90051-1

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