An Empirical Analysis of Residential Energy Efficiency Adoption by Housing Types and Occupancy

Uncertainties about future levels of energy availability and concern for climate change have raised public interest in energy efficiency and conservation. In particular, efficiency gains in the residential sector, which accounts for about 22% of energy end-use in the United States has the potential to yield large benefits for society. In this research we conduct an empirical analysis to investigate the likelihood of adoption of energy efficiency (EE) measures in the residential sector. We consider heterogeneity of occupants and homeowners based on their demographic characteristics, as well as the structural characteristics of housing units, weather parameters and geographical characteristics. Our empirical results shed light on (1) the drivers of EE adoption for households, (2) the extent to which EE adoption differs between homeowners and landlords, and (3) the extent to which EE adoption differs among types of housing (utility-included vs. utility-excluded rent, owner occupied).