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Subsidy as an agent to enhance the effectiveness of the energy performance certificate

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  • McGilligan, Charles
  • Sunikka-Blank, Minna
  • Natarajan, Sukumar

Abstract

Since more than two-thirds of the United Kingdom housing stock in 2050 will comprise houses that have already been built, the need for a focus of policy on the already-built private housing stock is apparent. This study examines the impact that subsidy can make in bolstering the performance of the Energy Performance Certificate by reducing carbon emissions in the residential sector. The results of a survey of new homeowners' uptake of nine commonly installed energy saving measures in response to subsidy are examined. A cost-benefit analysis is performed using the recently introduced concept of the Shadow Price of Carbon and a model is presented which allows the carbon savings for any level of subsidy to be calculated. The model suggests that subsidisation of the installation of hot water tank insulation, draught proofing measures, loft insulation and cavity wall insulation may be cost-effective, but that the subsidisation of others, most notably interior solid wall insulation, are unlikely to significantly bolster carbon savings.

Suggested Citation

  • McGilligan, Charles & Sunikka-Blank, Minna & Natarajan, Sukumar, 2010. "Subsidy as an agent to enhance the effectiveness of the energy performance certificate," Energy Policy, Elsevier, vol. 38(3), pages 1272-1287, March.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:3:p:1272-1287
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    References listed on IDEAS

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    1. Torleif Haugland, 1996. "Social Benefits of Financial Investment Support in Energy Conservation Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 79-102.
    2. Egmond, C. & Jonkers, R. & Kok, G., 2006. "One size fits all? Policy instruments should fit the segments of target groups," Energy Policy, Elsevier, vol. 34(18), pages 3464-3474, December.
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    1. Berardi, Umberto, 2013. "Stakeholders’ influence on the adoption of energy-saving technologies in Italian homes," Energy Policy, Elsevier, vol. 60(C), pages 520-530.
    2. Weiss, Julika & Dunkelberg, Elisa & Vogelpohl, Thomas, 2012. "Improving policy instruments to better tap into homeowner refurbishment potential: Lessons learned from a case study in Germany," Energy Policy, Elsevier, vol. 44(C), pages 406-415.
    3. Ozarisoy, B. & Altan, H., 2022. "Significance of occupancy patterns and habitual household adaptive behaviour on home-energy performance of post-war social-housing estate in the South-eastern Mediterranean climate: Energy policy desi," Energy, Elsevier, vol. 244(PB).
    4. Saqib Ali & Habib Ullah & Minhas Akbar & Waheed Akhtar & Hasan Zahid, 2019. "Determinants of Consumer Intentions to Purchase Energy-Saving Household Products in Pakistan," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    5. Li, Y. & Kubicki, S. & Guerriero, A. & Rezgui, Y., 2019. "Review of building energy performance certification schemes towards future improvement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.

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