Valuing energy-saving measures in residential buildings

A choice experiment study

So Yoon Kwak, Seung Hoon Yoo, Seung-Jun Kwak

Research output: Contribution to journalArticle

54 Citations (Scopus)

Abstract

Air-conditioning and heating energy-saving measures can cut back the usage of energy. This paper attempts to apply a choice experiment in evaluating the consumer's willingness to pay (WTP) for air-conditioning and heating energy-saving measures in Korea's residential buildings. We consider the trade-offs between price and three attributes of energy-saving (window, facade, and ventilation) for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. We also try to test irrelevant alternatives property for the estimation model holds and compare the estimation results of the multinomial logit (MNL) and the nested logit (NL) models. The NL model outperforms the MNL model. The NL model show that MWTPs for increasing the number of glasses and their variety, for increasing the thickness of facade for 1 mm, and for establishing a ventilation system are KRW 17,392 (USD 18.2), 1,112 (1.2), and 11,827 (12.4), respectively. Overall, the potential consumers have significant amount of WTP.

Original languageEnglish
Pages (from-to)673-677
Number of pages5
JournalEnergy Policy
Volume38
Issue number1
DOIs
Publication statusPublished - 2010 Jan 1

Fingerprint

Energy conservation
willingness to pay
Facades
air conditioning
Air conditioning
experiment
Experiments
Ventilation
ventilation
heating
Heating
glass
energy saving
residential building
Glass
energy
attribute

Keywords

  • Choice experiment
  • Energy-saving measures
  • Nested logit model

ASJC Scopus subject areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

Cite this

Valuing energy-saving measures in residential buildings : A choice experiment study. / Kwak, So Yoon; Yoo, Seung Hoon; Kwak, Seung-Jun.

In: Energy Policy, Vol. 38, No. 1, 01.01.2010, p. 673-677.

Research output: Contribution to journalArticle

Kwak, So Yoon ; Yoo, Seung Hoon ; Kwak, Seung-Jun. / Valuing energy-saving measures in residential buildings : A choice experiment study. In: Energy Policy. 2010 ; Vol. 38, No. 1. pp. 673-677.
@article{c0776847f8a24a25b9341cb7861a3655,
title = "Valuing energy-saving measures in residential buildings: A choice experiment study",
abstract = "Air-conditioning and heating energy-saving measures can cut back the usage of energy. This paper attempts to apply a choice experiment in evaluating the consumer's willingness to pay (WTP) for air-conditioning and heating energy-saving measures in Korea's residential buildings. We consider the trade-offs between price and three attributes of energy-saving (window, facade, and ventilation) for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. We also try to test irrelevant alternatives property for the estimation model holds and compare the estimation results of the multinomial logit (MNL) and the nested logit (NL) models. The NL model outperforms the MNL model. The NL model show that MWTPs for increasing the number of glasses and their variety, for increasing the thickness of facade for 1 mm, and for establishing a ventilation system are KRW 17,392 (USD 18.2), 1,112 (1.2), and 11,827 (12.4), respectively. Overall, the potential consumers have significant amount of WTP.",
keywords = "Choice experiment, Energy-saving measures, Nested logit model",
author = "Kwak, {So Yoon} and Yoo, {Seung Hoon} and Seung-Jun Kwak",
year = "2010",
month = "1",
day = "1",
doi = "10.1016/j.enpol.2009.09.022",
language = "English",
volume = "38",
pages = "673--677",
journal = "Energy Policy",
issn = "0301-4215",
publisher = "Elsevier BV",
number = "1",

}

TY - JOUR

T1 - Valuing energy-saving measures in residential buildings

T2 - A choice experiment study

AU - Kwak, So Yoon

AU - Yoo, Seung Hoon

AU - Kwak, Seung-Jun

PY - 2010/1/1

Y1 - 2010/1/1

N2 - Air-conditioning and heating energy-saving measures can cut back the usage of energy. This paper attempts to apply a choice experiment in evaluating the consumer's willingness to pay (WTP) for air-conditioning and heating energy-saving measures in Korea's residential buildings. We consider the trade-offs between price and three attributes of energy-saving (window, facade, and ventilation) for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. We also try to test irrelevant alternatives property for the estimation model holds and compare the estimation results of the multinomial logit (MNL) and the nested logit (NL) models. The NL model outperforms the MNL model. The NL model show that MWTPs for increasing the number of glasses and their variety, for increasing the thickness of facade for 1 mm, and for establishing a ventilation system are KRW 17,392 (USD 18.2), 1,112 (1.2), and 11,827 (12.4), respectively. Overall, the potential consumers have significant amount of WTP.

AB - Air-conditioning and heating energy-saving measures can cut back the usage of energy. This paper attempts to apply a choice experiment in evaluating the consumer's willingness to pay (WTP) for air-conditioning and heating energy-saving measures in Korea's residential buildings. We consider the trade-offs between price and three attributes of energy-saving (window, facade, and ventilation) for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. We also try to test irrelevant alternatives property for the estimation model holds and compare the estimation results of the multinomial logit (MNL) and the nested logit (NL) models. The NL model outperforms the MNL model. The NL model show that MWTPs for increasing the number of glasses and their variety, for increasing the thickness of facade for 1 mm, and for establishing a ventilation system are KRW 17,392 (USD 18.2), 1,112 (1.2), and 11,827 (12.4), respectively. Overall, the potential consumers have significant amount of WTP.

KW - Choice experiment

KW - Energy-saving measures

KW - Nested logit model

UR - http://www.scopus.com/inward/record.url?scp=71649113597&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=71649113597&partnerID=8YFLogxK

U2 - 10.1016/j.enpol.2009.09.022

DO - 10.1016/j.enpol.2009.09.022

M3 - Article

VL - 38

SP - 673

EP - 677

JO - Energy Policy

JF - Energy Policy

SN - 0301-4215

IS - 1

ER -