Discussion Papers no. 737

How do investments in heat pumps affect household energy consumption?

In this study, we develop a method for decomposing the behavioral responses to increased energy efficiency based on a conditional demand model applied to a household production framework.

Increased energy efficiency is often seen as the best way of reducing energy consumption. However, the cost reduction resulting from the efficiency increase can undermine the energy-saving potential of the efficiency measures. In this study, we develop a method for decomposing the behavioral responses to increased energy efficiency based on a conditional demand model applied to a household production framework. We find that the electricity savings potential of the increased use of heat pumps in Norwegian homes is completely offset by changes in consumption. Households with heat pumps maintain higher indoor temperatures, consume less alternative fuels and engage less in energy-saving behavior than other households. This analysis illustrates that subsidizing investments in new and more energy-efficient technology may not always be an effective means of reducing energy consumption.

About the publication

Title

How do investments in heat pumps affect household energy consumption?

Authors

Bente Halvorsen, Bodil Merethe Larsen

Series and number

Discussion Papers no. 737

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

26

Language

Engelsk

About Discussion Papers

Discussion Papers (DP) presenterer forskingsstoff som sikter mot å ende opp som en internasjonal publikasjon og distribueres for kommentarer og forslag. Et DP kan likevel være lengre og fyldigere enn det som er vanlig for en artikkel ved at blant annet ugjennomsiktige mellomberegninger, resultat og bakgrunnsmateriale blir inkludert.

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