Energy efficiency and renewable energy technologies provide important opportunities to reduce greenhouse gas emissions. However, households fail to take up many clean energy investments that are cost-effective. This article reviews different explanations for apparent underinvestment in energy efficiency that have been put forward in the literature. While investments in renewable energy technologies are typically not (yet) profitable, many of its drivers are similar to those that determine energy efficiency investments, and the two types of investment are therefore assessed jointly. The article also provides new evidence regarding barriers to investment in energy efficiency based on the OECD Survey on Household Environmental Behaviour and Attitudes. Finally, policy solutions that would help overcome some of these barriers are also presented.
What Impedes Household Investment in Energy Efficiency and Renewable Energy?
Nadia Ameli and Nicola Brandt are members of the Economics Department of the OECD. The research leading to these results has received funding from the People Programme (Marie Curie Actions) of the European Union’s Seventh Framework Programme (FP7/2007-2013) under REA grant agreement PIEF-GA-2012-331154 - project PACE (Property Assessed Clean Energy). The authors would like to thank Virginie Marchal, Peter Hoeller, Daniel Kammen and various participants of OECD seminars for their valuable comments and suggestions and Veronica Humi for technical preparation. The opinions expressed herein are those of the authors and do not necessarily reflect the opinions of the OECD.
Ameli N, Brandt N (2015), "What Impedes Household Investment in Energy Efficiency and Renewable Energy?". International Review of Environmental and Resource Economics, Vol. 8 No. 1 pp. 101–138, doi: https://doi.org/10.1561/101.00000067
Download citation file:
Sign in
ICE Member Sign In
Log inPurchased this content as a guest? Enter your email address to restore access.
