Willingness to Pay for Energy-Saving Measures in Residential Buildings

Silvia Banfi (), Mehdi Farsi, Massimo Filippini and Martin Jakob ()
Additional contact information
Silvia Banfi: Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland
Martin Jakob: Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland

No 05-41, CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich

Abstract: This paper uses a choice experiment to evaluate the consumers’ willingness to pay for energysaving measures in residential buildings. These measures include air renewal systems as well as thermal insulation of windows and facades. In addition to considerable savings in energy consumption, these systems incur other “private” benefits such as thermal comfort, air quality and protection against noise. The extremely low rates of usage of these systems in Switzerland’s residential buildings is generally explained by consumers’ lack of information and/or the insignificance of private benefits, which have led the Swiss authorities to adopt a promotion policy through direct subsidies and information campaigns. The valuation of private benefits of energy-saving measures has been estimated using hypothetical choice experiments performed on two samples consisting respectively of 163 tenants living in apartment buildings and 142 residents of single-family houses. The respondents were repeatedly asked to choose between their status quo and an alternative situation characterized by different attributes and prices. The estimation method is based on a fixed effect logit model. The results suggest a significant willingness to pay for energy-saving attributes.

Keywords: energy efficiency; choice experiment; conjoint analysis; discrete choice; housing (search for similar items in EconPapers)
JEL-codes: C25 C93 Q40 R21 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP41.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not found UA (http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP41.pdf [301 Moved Permanently]--> https://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP41.pdf [301 Moved Permanently]--> https://cepe.ethz.ch/publications/workingPapers/CEPE_WP41.pdf)

Related works:
Journal Article: Willingness to pay for energy-saving measures in residential buildings (2008)
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:cee:wpcepe:05-41

Access Statistics for this paper

More papers in CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Ordas ().