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Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success

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  • Feser, Daniel
  • Runst, Petrik

Abstract

Residential energy consumption has been increasingly singled out by public policies as a key area for potential emission reduction. The public implementation of energy efficiency consultants (EECs) as change agents aims at the diffusion of innovation in building efficiency and overcoming information asymmetries in the construction sector. However, the success of these measures has been described as low. We conducted a case study involving 17 in-depth expert interviews to examine the causes of this failure within the German institutional context. This analysis has important implications for EECs in general and other European countries. We show that credence good characteristics in the ECC market led to a low willingness to pay. Certification of EECs does not suffice to overcome information asymmetries. We also identify a mismatch between EECs and customer incentives. As top-down policies have failed to facilitate a viable EEC market, we recommend a greater role for private and private-public networks, the cutting of EEC subsidies and a closer alignment between climate policy goals and home owners’ economic efficiency considerations.

Suggested Citation

  • Feser, Daniel & Runst, Petrik, 2015. "Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success," ifh Working Papers 1 (2015), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    • Handle: RePEc:zbw:ifhwps:12015
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    References listed on IDEAS

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    Cited by:

    1. Schneider, Tim & Bizer, Kilian, 2017. "Expert qualification in markets for expert services: A Sisyphean Task?," University of Göttingen Working Papers in Economics 323, University of Goettingen, Department of Economics.
    2. Feser, Daniel & Bizer, Kilian & Rudolph-Cleff, Annette & Schulze, Joachim, 2016. "Energy audits in a private firm environment: Energy efficiency consultants' cost calculation for innovative technologies in the housing sector," University of Göttingen Working Papers in Economics 275, University of Goettingen, Department of Economics.
    3. Schneider, Tim & Bizer, Kilian, 2017. "Effects of qualification in expert markets with price competition and endogenous verifiability," University of Göttingen Working Papers in Economics 317, University of Goettingen, Department of Economics.

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