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Barriers and Tools for Barriers and Tools for Energy Efficiency: A Energy Efficiency: A
Socio-economic Socio-economic ApproachApproach
By: Katherine Bergen By: Katherine Bergen
Myriam BrouéMyriam Broué
Vanessa DziarmagaVanessa Dziarmaga
Suzanne LoveSuzanne Love
Julie SmithJulie Smith
OverviewOverview
The Client The Client
Introduction to Introduction to
energy efficiencyenergy efficiency
Research QuestionsResearch Questions
MethodologyMethodology
Results and AnalysisResults and Analysis
Conclusions and Conclusions and
RecommendationRecommendation
ss
AcknowledgmentsAcknowledgments
The Client - L’Union The Client - L’Union des Consommateursdes Consommateurs
Fédération des Acef du Québec (FACEF) Fédération des Acef du Québec (FACEF)
and Action Réseau Consommateurand Action Réseau Consommateur
Non -profit organizationNon -profit organization
Defends rights and interests of consumersDefends rights and interests of consumers
lower incomeslower incomes
The Client - L’Union The Client - L’Union des des
ConsommateursConsommateurs
Interested in:Interested in:
the potential for energy efficiency in the potential for energy efficiency in
QuébecQuébec
barriers to energy efficiency by socio-barriers to energy efficiency by socio-
economic classeseconomic classes
tools for overcoming barriers to tools for overcoming barriers to
energy efficiencyenergy efficiency
Low-Income DefinitionLow-Income Definition
Number of people per householdNumber of people per household
1 person: 21,2131 person: 21,213
4 people: 42,0844 people: 42,084
7 people: 53,6777 people: 53,677
What is Energy What is Energy Efficiency?Efficiency?
Defined by the World Energy Defined by the World Energy CouncilCouncil
‘ ‘ all changes that result in decreasing the all changes that result in decreasing the
amount of energy used to produce one unit amount of energy used to produce one unit
of economic activity… or to meet the energy of economic activity… or to meet the energy
requirements for a given level of comfort. ’requirements for a given level of comfort. ’
‘ ‘ associated to economic efficiency and associated to economic efficiency and
includes technological, behavioral and includes technological, behavioral and
economic changes. ’economic changes. ’
Why is energy efficiency Why is energy efficiency important?important?
66thth largest consumer of energy largest consumer of energy Environmental, economic and social Environmental, economic and social
concernsconcerns Desirable to reduce energy Desirable to reduce energy
consumptionconsumption
How? How? INCREASE ENERGY INCREASE ENERGY EFFICIENCYEFFICIENCY
How can energy efficiency How can energy efficiency be increased?be increased?
20 % of energy is used in the 20 % of energy is used in the
residential sectorresidential sector
Benefits of improving residential Benefits of improving residential
energy efficiency:energy efficiency: Environmental benefitsEnvironmental benefits
Economic benefitsEconomic benefits
Social benefitsSocial benefits
The Research The Research QuestionsQuestions
(1)(1) How big is the potential for energy efficiency How big is the potential for energy efficiency in the Québec residential sector?in the Québec residential sector?
(2)(2) What are the barriers within various socio-What are the barriers within various socio-economic classes that inhibit consumers economic classes that inhibit consumers from from being more energy efficient at home?being more energy efficient at home?
(3)(3) What are the appropriate “tools” that are What are the appropriate “tools” that are needed to help each socio-economic class of needed to help each socio-economic class of residential consumers overcome the residential consumers overcome the identified barriers to energy efficiency?identified barriers to energy efficiency?
The Research The Research QuestionsQuestions
(1)(1) How big is the potential for energy How big is the potential for energy efficiency efficiency in the Québec residential in the Québec residential sector?sector?
Methodology: Methodology: Question 1Question 1
evaluate three different calculations of evaluate three different calculations of
potentialpotential
reports by various organizationsreports by various organizations
potentials were evaluated and compared potentials were evaluated and compared
analysis of calculated potentialsanalysis of calculated potentials
Results: Question 1Results: Question 1
Hydro-Québec Development Plan, Hydro-Québec Development Plan, 19901990
2 goals2 goals energyenergy savings savings consumption managementconsumption management
technical potential: 45 TWhtechnical potential: 45 TWh economic potential: 27.6 TWheconomic potential: 27.6 TWh overall objective 9.3 TWh revised to 6.2 overall objective 9.3 TWh revised to 6.2
TWhTWh
Results: Question 1Results: Question 1
Potential Savings by Energy Use (Service Planification Commerciale, 1992)
heating
lighting
water heating appliances
new constructions
air conditioning
pool
Results: Question 1Results: Question 1
Economic Potential for Energy Efficiency (Hydro-Québec and Energy Efficiency Agency, 2001)
0
0.5
1
1.5
2
2.5
3
Electricity Natural Gas Oil Wood
Energy Source
To
tal
Po
ten
tial
(T
Wh
)
Results: Question 1Results: Question 1
Hydro-Québec Development Plan, 1990Hydro-Québec Development Plan, 1990
potential for all of Québecpotential for all of Québec
hard to determine accuratelyhard to determine accurately
Results: Question 1Results: Question 1
1992 vs. 20011992 vs. 2001Factors :Factors : calculated 9 years apartcalculated 9 years apart improved technologiesimproved technologies increased available programsincreased available programs increased regulationsincreased regulations better understanding of parametersbetter understanding of parameters reduction in avoided costreduction in avoided cost
The Research The Research QuestionsQuestions
(2)(2) What are the barriers within What are the barriers within various socio-various socio- economic classes economic classes that inhibit consumers that inhibit consumers from from being more energy efficient at home?being more energy efficient at home?
Methodology: Methodology: Question 2Question 2
Examination of literatureExamination of literature Barriers categorized by socioeconomic Barriers categorized by socioeconomic
classclass All socioeconomic classAll socioeconomic class Universal barriers, which are Universal barriers, which are amplified in low socioeconomic classamplified in low socioeconomic class
Low socioeconomic classLow socioeconomic class Average incomeAverage income
Results: Question 2 Results: Question 2
All socioeconomic classes:All socioeconomic classes:
Pricing of energy below its true costPricing of energy below its true cost
Attitudes towards energy efficiencyAttitudes towards energy efficiency
Construction of new homes and buildings- Construction of new homes and buildings-
separation of expenditure and benefitseparation of expenditure and benefit
Results: Question 2 Results: Question 2
Universal barriers, which are amplified in Universal barriers, which are amplified in low socioeconomic classlow socioeconomic class
1.1. Information accessInformation access
2.2. Uncertain technologiesUncertain technologies
3.3. Consumer creditConsumer credit
4.4. Lack of knowledgeLack of knowledge
5.5. Unfavourable payback periodsUnfavourable payback periods
6.6. High initial capital costsHigh initial capital costs
7.7. Difficult installationDifficult installation
Results: Question 2 Results: Question 2
Low socioeconomic class Low socioeconomic class
TenancyTenancy
Low LiquidityLow Liquidity
High perceived discount ratesHigh perceived discount rates
Results: Question 2 Results: Question 2
Low socioeconomic classLow socioeconomic class
Tenancy: separation of Tenancy: separation of
expenditure and benefitexpenditure and benefit
Tenant-landlord interactionTenant-landlord interaction
Tenancy ratesTenancy rates
Results: Question 2 Results: Question 2
Low socioeconomic classLow socioeconomic class
Low liquidityLow liquidity
little cash little cash
low ability to raise cashlow ability to raise cash
Results: Question 2 Results: Question 2
Low socioeconomic class Low socioeconomic class
High Perceived discount ratesHigh Perceived discount rates
The undervaluation of future energy The undervaluation of future energy
savingssavings
Results: Question 2 Results: Question 2
Average IncomeAverage Income
Energy costs are a small part of Energy costs are a small part of
household expenditureshousehold expenditures
Low income: 14%Low income: 14%
Average income: 3%Average income: 3%
The Research The Research QuestionsQuestions
(3)(3) What are the appropriate “tools” that What are the appropriate “tools” that are are needed to help each socio-needed to help each socio-economic class of economic class of residential consumers residential consumers overcome the overcome the identified barriers identified barriers to energy efficiency?to energy efficiency?
Methodology: Question Methodology: Question 33
Tools used in programs Tools used in programs
Programs from Federal and Programs from Federal and
Provincial governments Provincial governments
NGOsNGOs
Energy supplying companiesEnergy supplying companies
Results: Question 3Results: Question 3
ToolsTools
LeadershipLeadership
Information Information
and educationand education
Volunteering Volunteering
initiativesinitiatives
Financial Financial
incentivesincentives
RegulationRegulation
Research and Research and
developmentdevelopment
Results: Question 3Results: Question 3
Federal ProgramsFederal Programs
Natural Resource Canada and Natural Resource Canada and
Office of Energy EfficiencyOffice of Energy Efficiency
EnerGuideEnerGuide
Energy StarEnergy Star
R- 2000R- 2000
Results: Question 3Results: Question 3
Non-governmental Non-governmental
OrganizationsOrganizations
Canadian Low-Income Energy Canadian Low-Income Energy
Efficiency ProgramEfficiency Program
Results: Question 3Results: Question 3
Provincial programsProvincial programs
Hydro-QuébecHydro-Québec
Gaz MétopolitainGaz Métopolitain
Results: Question 3Results: Question 3
Non-governmental OrganizationsNon-governmental Organizations
Energy-Cost Saving Program for Energy-Cost Saving Program for
Low-Income HouseholdsLow-Income Households
General Recommendations
educational programseducational programs
subsidize energy efficiency programssubsidize energy efficiency programs
government regulationsgovernment regulations
NGO’sNGO’s
information accessinformation access
Recommendations to the Recommendations to the clientclient
Continue researchContinue research
Collect raw data for Montreal Collect raw data for Montreal
AcknowledgementsAcknowledgements
The group would like to thank The group would like to thank
Prof. George McCourt and Prof. George McCourt and
Mounir Gouja for their Mounir Gouja for their
patience and assistance.patience and assistance.