Housing market transformation

Panel: Panel 1. The foundations of future energy policies: Initiating change and breaking walls

Authors:
Tina Fawcett, Environmental Change Institute, University of Oxford, United Kingdom
Brenda Boardman, Environmental Change Institute, University of Oxford, United Kingdom

Abstract

Reducing energy use in the existing building stock requires a substantial and rapid transformation of the whole sector. Using a market transformation approach provides a useful framework and poses some new problems in comparison with appliances: houses don’t break down in the same way as fridges, but can be improved piecemeal. The Energy Performance in Buildings Directive provides the foundation (and the x axis) for policies to achieve substantial reductions in residential energy use and carbon emissions by 2050. The technology is known, but has to be chosen by the householder – it cannot be incorporated in the factory by a manufacturer. Education and awareness are, therefore, more important, both for the householder and for the installers. What is the role, if any, of mandatory minimum standards? The types and mix of policies require a clear understanding of the challenges provided by low-income groups, capital shortages, the length of residence in the house, the landlord-tenant split and user knowledge. This paper reviews the challenges and examines the extent to which the well-known market transformation theories work for the housing sector. Most of the examples are from the UK, but have been developed into generic principles.