Barriers and Tools for Energy Efficiency: A Socio-economic Approach

1
Barriers and Tools for Energy Efficiency A
Socio-economic Approach

• By Katherine Bergen
• Myriam Broué
• Vanessa Dziarmaga
• Suzanne Love
• Julie Smith

2
Overview

• The Client
• Introduction to energy efficiency
• Research Questions
• Methodology
• Results and Analysis

• Conclusions and Recommendations
• Acknowledgments

3
The Client - LUnion des Consommateurs

• Fédération des Acef du Québec (FACEF) and Action
  Réseau Consommateur
• Non -profit organization
• Defends rights and interests of consumers
• lower incomes

4
The Client - LUnion des Consommateurs

• Interested in
• the potential for energy efficiency in Québec
• barriers to energy efficiency by socio-economic
  classes
• tools for overcoming barriers to energy
  efficiency

5
Low-Income Definition

• Number of people per household
• 1 person 21,213
• 4 people 42,084
• 7 people 53,677

6
What is Energy Efficiency?Defined by the World
Energy Council

•  all changes that result in decreasing the
  amount of energy used to produce one unit of
  economic activity or to meet the energy
  requirements for a given level of comfort.
•  associated to economic efficiency and includes
  technological, behavioral and economic changes. 

7
Why is energy efficiency important?

• 6th largest consumer of energy
• Environmental, economic and social concerns
• Desirable to reduce energy consumption
• How? INCREASE ENERGY EFFICIENCY

8
How can energy efficiency be increased?

• 20 of energy is used in the residential sector
• Benefits of improving residential energy
  efficiency
• Environmental benefits
• Economic benefits
• Social benefits

9
The Research Questions

• (1) How big is the potential for energy
  efficiency in the Québec residential sector?
• (2) What are the barriers within various
  socio- economic classes that inhibit consumers
  from being more energy efficient at home?
• (3) What are the appropriate tools that are
  needed to help each socio-economic class of
  residential consumers overcome the identified
  barriers to energy efficiency?

10
The Research Questions

• (1) How big is the potential for energy
  efficiency in the Québec residential sector?

11
Methodology Question 1

• evaluate three different calculations of
  potential
• reports by various organizations
• potentials were evaluated and compared
• analysis of calculated potentials

12
Results Question 1

• Hydro-Québec Development Plan, 1990
• 2 goals
• energy savings
• consumption management
• technical potential 45 TWh
• economic potential 27.6 TWh
• overall objective 9.3 TWh revised to 6.2 TWh

13
Results Question 1
14
Results Question 1
15
Results Question 1

• Hydro-Québec Development Plan, 1990
• potential for all of Québec
• hard to determine accurately

16
Results Question 1

• 1992 vs. 2001
• Factors 
• calculated 9 years apart
• improved technologies
• increased available programs
• increased regulations
• better understanding of parameters
• reduction in avoided cost

17
The Research Questions

• (2) What are the barriers within various
  socio- economic classes that inhibit consumers
  from being more energy efficient at home?

18
Methodology Question 2

• Examination of literature
• Barriers categorized by socioeconomic class
• All socioeconomic class
• Universal barriers, which are amplified in low
  socioeconomic class
• Low socioeconomic class
• Average income

19
Results Question 2

• All socioeconomic classes
• Pricing of energy below its true cost
• Attitudes towards energy efficiency
• Construction of new homes and buildings-
  separation of expenditure and benefit

20
Results Question 2

• Universal barriers, which are amplified in low
  socioeconomic class
• Information access
• Uncertain technologies
• Consumer credit
• Lack of knowledge
• Unfavourable payback periods
• High initial capital costs
• Difficult installation

21
Results Question 2

• Low socioeconomic class
• Tenancy
• Low Liquidity
• High perceived discount rates

22
Results Question 2

• Low socioeconomic class
• Tenancy separation of expenditure and benefit
• Tenant-landlord interaction
• Tenancy rates

23
Results Question 2

• Low socioeconomic class
• Low liquidity
• little cash
• low ability to raise cash

24
Results Question 2

• Low socioeconomic class
• High Perceived discount rates
• The undervaluation of future energy savings

25
Results Question 2

• Average Income
• Energy costs are a small part of household
  expenditures
• Low income 14
• Average income 3

26
The Research Questions

• (3) What are the appropriate tools that are
  needed to help each socio-economic class of
  residential consumers overcome the identified
  barriers to energy efficiency?

27
Methodology Question 3

• Tools used in programs
• Programs from Federal and Provincial governments
  
• NGOs
• Energy supplying companies

28
Results Question 3

• Tools
• Leadership
• Information and education
• Volunteering initiatives

• Financial incentives
• Regulation
• Research and development

29
Results Question 3

• Federal Programs
• Natural Resource Canada and Office of Energy
  Efficiency
• EnerGuide
• Energy Star
• R- 2000

30
Results Question 3

• Non-governmental Organizations
• Canadian Low-Income Energy Efficiency Program

31
Results Question 3

• Provincial programs
• Hydro-Québec
• Gaz Métopolitain

32
Results Question 3

• Non-governmental Organizations
• Energy-Cost Saving Program for Low-Income
  Households

33
General Recommendations

• educational programs
• subsidize energy efficiency programs
• government regulations
• NGOs
• information access

34
Recommendations to the client

• Continue research
• Collect raw data for Montreal

35
Acknowledgements

• The group would like to thank Prof. George
  McCourt and Mounir Gouja for their patience and
  assistance.