Decarbonizing the Residential Sector: How Prominent is Household Energy-Saving Behavior in Decision Making?

Fateh Belaïd

The Energy Journal, 2024, vol. 45, issue 1, 125-148

Abstract: In addition to scrutinizing the decision process behind energy efficiency investment, this study investigates its association with energy-saving behavior. Its conceptual underpinnings are based on the intersection of behavioral change and “energy efficiency paradox†theories. Based upon a rich, disaggregated dataset representative of the French housing sector, it develops an energy-saving score based on the item response theory model, which considers household attributes and ability levels. Then this score is used as an independent factor of a multivariate probit model to examine the drivers of household investment decisions for various energy performance solutions. The results highlight that: (i) contextual and attitudinal attributes are two major drivers of energy efficiency investments, and (ii) depending on the energy solution considered, there is a significant inverse relationship between energy-savings behavior and energy efficiency investments. This reveals that environmental awareness is not necessarily a driving factor behind energy efficiency investments and emphasizes the so-called “rebound effect†issue. The results support the view that promoting energy-saving behaviors and energy efficiency investments necessitate differentiated public policies that consider both individual preferences and housing stock heterogeneity. The analysis offers valuable policy guidance and research agenda outlining future energy efficiency research priorities.

Keywords: Energy efficiency; Dwelling energy renovation; Behavioral change; Energy policy; Investment decision; Multivariate Probit model (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:45:y:2024:i:1:p:125-148

DOI: 10.5547/01956574.45.1.fbel

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