Microdata Access Grant 2021. Authors: Linde Kattenberg, Piet Eichholtz, Nils Kok (Universiteit Maastricht – School of Business and Economics)
Improving the energy efficiency of the building stock is of significant importance in decreasing household energy consumption. One way to improve the energy efficiency of a home is through insulation measures. Using unique, hand-collected data on insulation measures, this study examines the effect of wall and basement insulation on gas consumption in a large sample of (rental and owner-occupied) residential homes. We test for heterogeneous effects across types of homes, and across household characteristics. Furthermore, we investigate long-run gas consumption after the energy efficiency improvements, to address potential concerns of a rebound effect. Insights from this study contribute to better estimates on the returns to home insulation. These results can inform homeowners and housing corporations in their home retrofitting decision, reducing their investment uncertainty. The results can also inform policymakers on the efficacy of energy efficiency in the housing market, which represents an important pillar in reducing national carbon emissions.
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