Changes in Household Fuel Expenditure Associated with Improvements in Building Energy Efficiency

John Curtis and Anne Pentecost

No WP478, Papers from Economic and Social Research Institute (ESRI)

Abstract: This paper combines data on residential building energy performance certificates (EPC) and household energy expenditure to estimate expenditure equations (Engel curves) as a function of building energy efficiency and household characteristics. Engle curves for gas, oil, electricity, solid fuel, and aggregate fuel expenditure are estimated for a sample of 5,891 households in the Republic of Ireland. With building energy performance measured using a 7 point letter scale (A to G) our results find that households living in relatively energy inefficient properties spend between â?¬160-â?¬419 per annum more on energy than households in B rated properties. In percentage terms a one letter improvement in building energy rating is associated with a 4-10% change in total household energy expenditure. When energy use for entertainment, cooking, and laundry purposes are excluded, this represents approximately a 6-14% change in energy expenditure for heating, lighting and ventilation purposes (i.e. building related energy).

Date: 2014-02
New Economics Papers: this item is included in nep-ene
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