Incentives for energy efficiency measures while renovating apartment

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Incentives for energy efficiency measures while renovating apartment blocks Lovisa Högberg Div of Building

Incentives for energy efficiency measures while renovating apartment blocks Lovisa Högberg Div of Building & Real Estate Economics 1

Project background • Energy efficiency is a hot topic -National and international goals -High

Project background • Energy efficiency is a hot topic -National and international goals -High energy consumption in the building sector – potential for saving • • The ’Million Program’ is in need of extensive renovation Few real estate owners have undertaken energy efficiency measures when renovating – why? 2

The Million Program Then: • Political decision due to housing shortage • 1965 -74

The Million Program Then: • Political decision due to housing shortage • 1965 -74 • Industrial approach • Pre oil crises Today: • Energy inefficient – consume up to twice as much as new building regulation • Private and public ownership 3

Paper 1: Energy efficiency while renovating – why so little? • Research in renovation

Paper 1: Energy efficiency while renovating – why so little? • Research in renovation methods – good examples - climate shell, installations, settings • Cost estimates • Institutional framework – what are the real estate owners’ incentives? - Profitability 4

Paper 1: Method • • Litterature & project review Interviews to get better understanding

Paper 1: Method • • Litterature & project review Interviews to get better understanding Formulate hypotheses to be tested Web-based questionnaire to test hypotheses - • Basis for conclusions about real estate owners’ thoughts and acts Recommendations based on findings 5

Paper 1: Possible hypotheses • • • Financial problems Uncertainty Split incentives Organizational inertia

Paper 1: Possible hypotheses • • • Financial problems Uncertainty Split incentives Organizational inertia Ignorance Inadequate cost estimates 6

Paper 2: Individual measuring and charging • • • IMC a recent trend Energy

Paper 2: Individual measuring and charging • • • IMC a recent trend Energy saving Who bears energy costs? How does it affect incentives for energy efficiency? Optimal solution – Pareto improvement possible 7

Paper 2: Method • Investigate the Swedish market for IMC - • Conditions Existing

Paper 2: Method • Investigate the Swedish market for IMC - • Conditions Existing incentives Show numerically that a Pareto optimal solution is possible 8

Paper 3: Energy markets and monopoly pricing • • • District heating – monopoloy

Paper 3: Energy markets and monopoly pricing • • • District heating – monopoloy market High fixed costs Lower consumption = lower revenues 9

Paper 3: Method • • • Literature review Theoretical review Empirical support if possible

Paper 3: Method • • • Literature review Theoretical review Empirical support if possible 10

Thank you! 11

Thank you! 11

Example 100 90 20 16 13 5 80 70 60 50 40 80 80

Example 100 90 20 16 13 5 80 70 60 50 40 80 80 80 No IMC IMC + En. Eff 30 20 10 0 12