OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Determinants of Households' Investment in Energy Efficiency and Renewables
Evidence from the OECD Survey on Household Environmental Behaviour and Attitudes
Many studies on household energy efficiency investments suggest that a wide range of seemingly profitable investments are not taken up. This paper provides novel evidence on the main factors behind consumer choices using the OECD Survey on Household Environmental Behaviour and Attitudes. The empirical analysis is based on the estimation of binary logit regression models. Empirical results suggest that households’ propensity to invest in clean energy technologies depends mainly on home ownership, income, social context and households’ information. Indeed, home owners and high-income households are more likely to invest than renters and low-income households. On the other hand, social context, such as membership in an environmental non-governmental organisation, and households’ knowledge about their energy spending and use may play a relevant role in technology adoption.
Keywords: discrete choice, technology adoption, consumer behaviour, energy efficiency
JEL:
O33: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Choices and Consequences; Diffusion Processes;
R22: Urban, Rural, Regional, Real Estate, and Transportation Economics / Household Analysis / Urban, Rural, Regional, Real Estate, and Transportation Economics: Other Demand;
Q40: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: General;
D12: Microeconomics / Household Behavior and Family Economics / Consumer Economics: Empirical Analysis;
Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth;
Q20: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: General
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