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Ecological-behavioral economics: Impact of information on energy-renovation decision through third-party investing

Author

Listed:
  • Fateh Belaïd
  • Véronique Flambard

    (LITL - Laboratoire Interdisciplinaire des transitions de Lille - UCL FGES - Université Catholique de Lille - Faculté de gestion, économie et sciences - ICL - Institut Catholique de Lille - UCL - Université catholique de Lille - JUNIA - JUNIA - UCL - Université catholique de Lille, UCL - Université catholique de Lille)

Abstract

Energy renovation faces critical challenges due to upfront costs and operational complexities, impeding its widespread adoption. Some strategies have initiated a groundbreaking economic model featuring a third-party payment mechanism. Under this innovative scheme, households redirect their energy bill savings to a third-party operator to fund renovation projects. In this study, employing a controlled laboratory experiment, we examine the diversity in preferences regarding this government policy and investigate the influence of informational tools on individuals' intentions to participate in the program. Our findings reveal that households with a strong environmental orientation, a penchant for risk-taking, and more altruistic and patient are more inclined to express interest in this program. Surprisingly, information designed to activate social norms and instill confidence in government intervention does not significantly enhance adoption intentions. Our experiment offers valuable methodological insights that can inform the implementation of effective energy renovation initiatives.

Suggested Citation

  • Fateh Belaïd & Véronique Flambard, 2024. "Ecological-behavioral economics: Impact of information on energy-renovation decision through third-party investing," Post-Print hal-04569392, HAL.
    • Handle: RePEc:hal:journl:hal-04569392
    DOI: 10.1016/j.ecolecon.2024.108196
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    1. Belaïd, Fateh & Mikayilov, Jeyhun I., 2024. "Closing the Efficiency Gap: Insights into curbing the direct rebound effect of residential electricity consumption in Saudi Arabia," Energy Economics, Elsevier, vol. 135(C).
    2. Fateh Belaïd & Charlotte Unger, 2024. "Crafting effective climate, energy, and environmental policy: time for action," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-5, December.

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