In our doctoral research, we wanted to investigate how to modify the Energy Performance Certificate (EPC) of a residential building to provide more accurate and understandable information on the economics of potential energy savings. If, in addition to the information on the energy efficiency (EE) of the building, the investor is given information on the cost of energy that the building will consume over a given period, the buyer would be better able to build up an economic picture of the relationship between the level of investment at the time of purchase and the likely economic savings over the expected lifetime of the building. This economic information could be captured by a modified form of the EPC to carry information on the energy costs that the dwelling will incur over a given period of time.
Accordingly, we upgraded the theoretical model of consumer decision-making regarding EE, forming the basis for our analyses. This upgrade was crucial for understanding consumer behavior in the context of EE when purchasing homes. Moreover, we assessed the significance of EE in consumers' purchasing decisions and determined the influence of energy labelling on EE selections via a survey questionnaire. Our objective was to identify the main market and behavioral barriers to EE investments and gather empirical data on the role of various factors, such as socio-economic characteristics and consumer attitudes, in these decisions. In order to gain a more comprehensive understanding of the manner in which consumers prioritise EE when making purchasing decisions, we divided prospective real estate purchasers into two groups and conducted a discrete choice experiment (DCE). The control group was presented with data regarding the EE of the property, as it is presently specified in the EPC (kWh/m2). The other group was given information regarding EE in monetary terms over a one-year period (EUR/year). Comparing the responses of the two groups and determining how distinct presentation techniques affect household investment decisions was the objective of the experiment. In order to assess price premiums, our research centred on the measurement of willingness to pay (WTP). To this end, we used the conditional logit model, mixed logit model, and model of shared preferences to analyse the effects of the novel EPC presentation method.
According to the findings of the study, EE is a significant determinant in the property purchase decisions of Slovenian consumers, with Slovenian households, particularly women, placing a high value on EE when buying a property. Through the application of shared preferences and conditional and mixed logit models, it was determined that buyers are more likely to pay an increased premium for properties that possess better EE, particularly when the cost of energy consumption is expressed in monetary terms. Potential buyers are more inclined to pay a premium for properties that are newer, in closer proximity to urban centres, and situated at a shorter distance from important infrastructure. Furthermore, an analysis revealed a statistically significant interaction between price and EE, suggesting that financial implications of EE has a substantial impact on consumer choices.
The scientific contribution resides in the developed method for identifying key factors influencing consumers' decisions to purchase properties. This method incorporates a discrete choice experiment-based application process and a model of consumer decision-making in real estate investments. The method allows for examining how EE information, presented in kWh/m2 compared to euros, influences consumer choice and estimating how much more consumers are willing to pay for homes properties featuring higher EE. Additionally, we developed a simplified method for converting EE data, which is displayed in physical units on computational EPCs, to monetary units. This facilitates comparisons and comprehensions of the expenses linked to EE properties.
|
