OSSOKINA

Energy transition in social sector: Can information stimulate tenants to invest in energy retrofitting?



This project is a collaboration with 4 housing associations

We show that information can both increase and decrease social tenants willingness to agree with energy retrofitting of their dwellings.

In the Netherlands, energy retrofitting of social housing can be seen as an investment for the tenants. Retrofitting yields returns in terms of savings on the energy bill, but usually requires an upfront investment in terms of a rent increase. We design and run a stated choice experiment to study what return tenants require on investing in different energy retrofitting packages used in Dutch practice. Two randomly selected treatment groups in this experiment receive additional information on the financial (gain) respectively comfort-related (hedonic) consequences of retrofitting. Our results suggest that between 70 and 80% of tenants are willing to agree with existing retrofitting packages, also when these include a rent increase. Information provision can change this share up or down with 3 to 5 percentage points. When comfort-related consequences of renovations are highlighted, people are more likely to choose for retrofitting. Information on financial consequences on the other hand makes people more critical and reduces the support for retrofitting.

Publications:

- Ossokina, I.V., S. Kerperien and T.A. Arentze, 2019, Do tenants want to invest in energy retrofitting and can information affect their choice?, Working Paper.