Journal
ENERGY SOURCES PART B-ECONOMICS PLANNING AND POLICY
Volume 16, Issue 2, Pages 179-197Publisher
TAYLOR & FRANCIS INC
DOI: 10.1080/15567249.2020.1868621
Keywords
Building energy model; microeconomics; energy efficiency; energy efficiency gap; electricity pricing; Saudi Arabia
Categories
Ask authors/readers for more resources
This study examines the marginal welfare gain of adopting higher energy efficiency after another efficiency measure has already been installed. The findings suggest that investing in more stringent thermal insulation after already installing more efficient air conditioners reduce welfare, but other preexisting efficiency cases may lead to welfare gains. In western Saudi Arabia, variability in welfare between marginal investment decisions are low relative to those in other regions.
This paper examines the marginal welfare gain of adopting higher energy efficiency after another efficiency measure has already been installed. For example, how does installing stringent thermal insulation influence energy efficiency investment decisions thereafter? A mathematical model that embeds a welfare-maximizing household in a building energy model is employed. Four archetypical households across Saudi Arabia and two electricity pricing schemes are chosen for this illustration. The households exhibit diverse socioeconomic attributes and live in regions with varying physical characteristics. Key findings include: Investing in more stringent thermal insulation after already installing more efficient air conditioners reduce welfare, but not necessarily vice versa. Under both electricity pricing schemes, welfare is lowered when households reduce infiltration after installing more stringent thermal insulation. Comparatively, welfare gains are made for all other preexisting efficiency cases. In western Saudi Arabia, variability in welfare between marginal investment decisions are low relative to those in other regions.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available