Investment in energy-efficient houses: An estimate of discount rates implicit in new home construction practices

Kenton R. Corum and Dennis L. O'Neal

Energy, 1982, vol. 7, issue 4, 389-400

Abstract: Data on residential construction practices in 1975–1976, together with climatic data, construction costs and fuel costs, are used to calculate discount rates implicit in homeowner's decisions to invest in energy-saving measures in new homes. This process is repeated for ten cities for three heating fuels in each city. The resulting discount rates are significantly higher than market rates of interest, suggesting market imperfections which reduce the level of investment in energy efficiency below the socially optimal level.

Date: 1982
References: View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0360544282900986
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:7:y:1982:i:4:p:389-400

DOI: 10.1016/0360-5442(82)90098-6

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().