Mobilisation for energy renovation – the case for behaviourally-informed policies

In Europe buildings are responsible for 36 per cent of the total CO2 emissions, therefore policies promoting energy renovation of the residential stock play an important role in tackling climate change. The mainstream approach is based on the principle that information provision and the economic incentives are enough to overpass underinvestment in energy efficiency upgrades of the dwellings. The present research challenges the assumptions of traditional policies of rational choice and takes into account evidence regarding behavioural failures such as bounded rationality (cognitive limitations), bounded willpower (self-control problems) and social preferences. The current thesis consists of two parts – the first part investigates dual-process models (DPMs) and their implications to decision making in the context of energy renovation. DPMs assume two possible ways of processing information – system 1 thinking that is heuristic, fast and effortless and system 2 thinking that is deliberative, relatively slow and effortful. The first chapter presents a literature review of the DPMs and the results of a survey exploring the balance between the two types of thinking regarding five energy efficiency measures. Chapter 2 summarises the findings of a survey with homeowners interested in renovation consisting of two parts - ranking exercise and choice experiment. The second part of the thesis focuses on evidence-based policies that take into account behavioural insights, using the Flemish energy performance certificate (EPC) as a case study. Chapter 3 presents the findings of a qualitative study consisting of a comparative study of nine European EPCs and a focus group with experts. Chapters 4 and 5 summarise the results of quantitative studies – laboratory experiments. The aim of these studies was to verify if different information framings of the certificate play a role in the comprehension and interpretation of the certificate and the willingness to renovate. The five chapters of the thesis are based on journal articles and a conference proceeding. The outcome of the thesis presented in Conclusions is a framework for evidence-based policies, elaborated based on the case study of the new version of the Flemish EPC. The proposed framework goes beyond nudging, as behaviourally-informed policies should take into account external constraints in the design of the choice architecture and the full spectrum of available policies. Nevertheless, behaviourally-informed policies are still at an early stage, and both the assumptions and the methods used are yet to be revised and this thesis is a small step in this direction.

Publication year:2019

Keywords:energy renovation, decision making, policy making, nudging, energy efficiency

Accessibility:Open