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D7 Report/paper on households respond to economic incentives

Publication

Abstract

The purpose of this work package was to estimate how households in the EU respond to different measures taken to increase energy efficiency and reduce energy use and hence GHGs. The survey on energy efficiency and household's energy-saving activities was conducted in the Czech Republic in the year 2014.

The survey instrument covered efficiency property of the home's envelope, energy use and energy-saving behavior of household members, and adoption of efficiency household appliance. In the Czech Republic, the estimated price elasticity of demand that is to assess that the rebound effect is as much as 43%.

In other words, we may say that about 43% of energy-efficiency gain is lost due to direct rebound effect. Still, it implies that a 10% increase in energy efficiency reduces gas use by about 6%.

Our finding of relatively high rebound effect is actually consistent with high rebound effect found in Spain (and reported in the 2nd reporting period). This estimate is based on an unique data covering behaviour of beneficiaries living in a family houses who got a financial support from the Czech Green For Saving Program to insulate their house.

Despite significant retrofitting activity over the last 7 years in the Czech Republic, when about 50% of homes have been insulated between, about 75% of houses still awaits insulation of their walls and/or their roofs.