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The role of individual preferences to explain the energy performance gap

Salomé Bakaloglou () and Dorothée Charlier ()
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Salomé Bakaloglou: Université de Montpellier, CSTB, Chaire Economie du Climat

No 2018.15, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: The aim of this research is to understand the role of socio-economic characteristics and individual preferences to explain the energy performance gap in the residential sector. The gap reflects the difference between theoretical energy consumption of home assessed by engineering models and real energy consumption. Using the ratio of the two consumptions as a measure of the gap, we perform a quantile regression to tease out the effects of preferences on the entire distribution of the energy performance gap spectrum instead of focusing on the conditional average. As a result, this research provides an original contribution: depending on the sense of the gap, our findings suggest that some significant drivers are individual preferences for comfort over economy, explaining until 12% of the gap variability, and poverty. In such a context, some warnings to public authorities are provided regarding the issues of rebound effect and household welfare.

Keywords: Residential energy consumption; Quantile treatment effect; Quantile regression; Energy Performance Gap; Households Ôpreferences (search for similar items in EconPapers)
JEL-codes: Q41 D12 C26 C21 (search for similar items in EconPapers)
Date: 2018-11
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http://faere.fr/pub/WorkingPapers/Bakaloglou_Charlier_FAERE_WP2018.15.pdf First version, 2018 (application/pdf)

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