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Evaluation of the Warmer Kiwis Homes Programme: Full Report including Cost Benefit Analysis

Author

Listed:
  • Caroline Fyfe

    (Motu Economic and Public Policy Research)

  • Arthur Grimes

    (Motu Economic and Public Policy Research)

  • Shannon Minehan

    (Motu Economic and Public Policy Research)

  • Phoebe Taptiklis

    (Motu Economic and Public Policy Research)

Abstract

We evaluate the heat pump component of New Zealand’s Warmer Kiwi Homes (WKH) programme. The programme includes provision of heat pumps in living areas for eligible households (based on neighbourhood or income) that do not have suitable heating. It also includes installation of retrofitted insulation for houses with insufficient insulation. Staggered installation enables difference-in-difference estimates of impacts. Heat pump outcomes on which we focus include warmth and dryness of the living area, personal comfort and wellbeing, and electricity consumption. We combine the heat pump findings with prior findings related to insulation and heating to provide a set of cost benefit analyses of WKH. We find that household members overwhelmingly report increases in warmth, comfort and satisfaction with their home, and report decreases in condensation, damp and having to restrict heating due to cost. Some increase in life satisfaction is reported. Living areas of treated houses experience increases in temperature which are most pronounced around breakfast and evening times, and when outdoor temperatures are low. Houses also experience reduced humidity. Households that use the heat pump as an air conditioner experience reduced summer temperatures when outdoor temperatures are high. Winter electricity use falls in a house fitted with a heat pump relative to houses without a heat pump; savings are negligible at night and increase through the day, peaking at 5-9pm. No increase in electricity consumption is detected in summer. Benefit cost ratios (BCRs) are calculated using both wellbeing metrics and conventional health and energy components. The wellbeing-based BCR for the heat pump component (which places a high value on living in a warm home) is estimated at 7.49 while the more conventionally calculated (but overly conservative) BCR is 2.15. For the full WKH programme, the corresponding BCRs are calculated as 4.36 and 1.89. Length: 86 pages

Suggested Citation

  • Caroline Fyfe & Arthur Grimes & Shannon Minehan & Phoebe Taptiklis, 2022. "Evaluation of the Warmer Kiwis Homes Programme: Full Report including Cost Benefit Analysis," Working Papers 22_14, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:22_14
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    File URL: https://motu-www.motu.org.nz/wpapers/22_14.pdf
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    Cited by:

    1. Davillas, Apostolos & Burlinson, Andrew & Liu, Hui-Hsuan, 2022. "Getting warmer: Fuel poverty, objective and subjective health and well-being," Energy Economics, Elsevier, vol. 106(C).

    More about this item

    Keywords

    Heat pumps; indoor temperature; electricity use; wellbeing; Warmer Kiwi Homes;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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