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Cost benefit analysis of the Warm Up New Zealand: Heat Smart programme

Author

Listed:
  • Arthur, Grimes
  • Tim, Denne
  • Philippa, Howden-Chapman
  • Richard, Arnold
  • Lucy, Telfar-Barnard
  • Nicholas, Preval
  • Chris, Young

Abstract

This report summarises the results of an analysis of the costs and benefits of the Warm Up New Zealand: Heat Smart programme. Under the programme, subsidies are provided towards the costs of retrofitting insulation and/or installing clean heating for pre-2000 houses. The benefits that are included in this report are analysed in more detail in three separate papers produced as part of this study that assess the impacts on energy use, health outcomes and producer surpluses, with additional data on employment. The costs of the programme are also assessed in this report and include the costs of the additional insulation and clean heating plus the administrative costs falling on the government. The overall results suggest that the programme as a whole has had sizeable net benefits, with our central estimate of programme benefits being almost five times resource costs attributable to the programme.

Suggested Citation

  • Arthur, Grimes & Tim, Denne & Philippa, Howden-Chapman & Richard, Arnold & Lucy, Telfar-Barnard & Nicholas, Preval & Chris, Young, 2012. "Cost benefit analysis of the Warm Up New Zealand: Heat Smart programme," MPRA Paper 99919, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99919
    as

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    File URL: https://mpra.ub.uni-muenchen.de/99919/1/MPRA_paper_99919.pdf
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    References listed on IDEAS

    as
    1. Preval, Nick & Chapman, Ralph & Pierse, Nevil & Howden-Chapman, Philippa, 2010. "Evaluating energy, health and carbon co-benefits from improved domestic space heating: A randomised community trial," Energy Policy, Elsevier, vol. 38(8), pages 3965-3972, August.
    2. Howden-Chapman, P. & Crane, J. & Matheson, A. & Viggers, H. & Cunningham, M. & Blakely, T. & O'Dea, D. & Cunningham, C. & Woodward, A. & Saville-Smith, K. & Baker, M. & Waipara, N., 2005. "Retrofitting houses with insulation to reduce health inequalities: Aims and methods of a clustered, randomised community-based trial," Social Science & Medicine, Elsevier, vol. 61(12), pages 2600-2610, December.
    3. Howden-Chapman, Philippa & Viggers, Helen & Chapman, Ralph & O'Dea, Des & Free, Sarah & O'Sullivan, Kimberley, 2009. "Warm homes: Drivers of the demand for heating in the residential sector in New Zealand," Energy Policy, Elsevier, vol. 37(9), pages 3387-3399, September.
    4. David C. Maré, 2005. "Indirect Effects of Active Labour Market Policies," Working Papers 05_01, Motu Economic and Public Policy Research.
    5. Phillips, Yvonne & Scarpa, Riccardo, 2010. "Waikato warm home study," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96494, New Zealand Agricultural and Resource Economics Society.
    6. Berkhout, Peter H. G. & Muskens, Jos C. & W. Velthuijsen, Jan, 2000. "Defining the rebound effect," Energy Policy, Elsevier, vol. 28(6-7), pages 425-432, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. John Gibson & Riccardo Scarpa & Halahingano Rohorua, 2013. "Respiratory Health of Pacific Island Immigrants and Preferences for Indoor Air Quality Determinants in New Zealand," Working Papers in Economics 13/09, University of Waikato.
    2. Frank Pega & Nick Wilson, 2016. "A Systematic Review of Health Economic Analyses of Housing Improvement Interventions and Insecticide-Treated Bednets in the Home," PLOS ONE, Public Library of Science, vol. 11(6), pages 1-29, June.
    3. Ossokina, Ioulia V. & Kerperien, Stephan & Arentze, Theo A., 2021. "Does information encourage or discourage tenants to accept energy retrofitting of homes?," Energy Economics, Elsevier, vol. 103(C).
    4. John Gibson & Riccardo Scarpa & Halahingano Rohorua, 2017. "Estimating the willingness to pay for Warmer and Drier Homes," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(1), pages 15-27, January.

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    More about this item

    Keywords

    Insulation; home heating; health benefits; energy consumption;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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