The determinants of energy efficient retrofit investments in the English residential sector

Meeting the UK's long-term carbon emissions target implies significant energy performance improvements of the existing residential building stock that is amongst the oldest and least energy efficient in Europe. A better understanding of the key determinants of energy efficient retrofit investments in the residential sector is therefore crucial for the design of effective policies aimed at reducing energy demand and CO2 emissions. This article uses combined data from English Housing surveys and employs a probit model in order to investigate the dwelling-related and households characteristics influencing energy efficient retrofit investments in the English residential sector. The results show that couples with independent child(ren) living in detached or semi-detached houses built before 1990 and with a length of residence higher than 1 year are more likely to invest in retrofits measures; compared to households living in the North East region, households living in London are less likely to invest. While there is empirical evidence supporting the landlord-tenant problem, households that have taken out a mortgage are more likely to invest in energy efficient retrofit measures than outright owners. To maximise their impact and effectiveness, future energy efficiency policies should target specific household groups with the lowest rate of retrofit uptake.