Working paper on behavioural response to investment risks in energy efficiency adds insights to the discount rate discussion

(eceee news, 18 Dec 2017) A recent BRISKEE working paper provides insights to the European debate on discount rates. The paper analysis the macroeconomic effects of energy efficiency measures in EU households and is part of the BRISKEE (Behavioural Response to Investment Risks in Energy Efficiency).

The BRISKEE project provides empirical evidence on several levels that serves as input to the policy making process.

  • On the micro level, the project provides empirical evidence on the factors that influence investment decisions for energy efficiency technologies in households, in particular focusing on the role of household preferences for time discounting and risk, accounting for possible differences by technologies, household types, and countries. 

  • On the meso level, the project explores the impact of time discounting and risk preferences, and of policies affecting those factors on technology diffusion and energy demand in the residential sector in Europe up to 2030. The project uses inputs from the micro - level analysis in order to improve the representation of investment decisions in energy demand modelling tools.

  • On the macro level, BRISKEE explores the long - term macroeconomic impacts of changes in micro - economic decision - making and of energy efficiency policy on employment and GDP in the EU up to 2030. The macroecono mic modelling uses input from the scenarios generated in the energy demand models. 

Energy efficiency has been widely studied on the micro level, whereas only a small number of studies have analysed the macroeconomic impacts of energy efficiency.

Read more on the BRISKEE-CHEETAH project site