Reorienting finance towards energy efficiency: the case of UK housing

Bergman, Noam and Foxon, Timothy (2018) Reorienting finance towards energy efficiency: the case of UK housing. Working Paper. SPRU Working Paper Series, University of Sussex.

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Abstract

This paper examines the challenges associated with stimulating large-scale investment in energy efficiency and demand management measures, using residential energy efficiency improving retrofits in the UK as a case study. We consider how issues of energy policy, consumer choice and financial systems intersect, drawing on recent literature including energy policy documents and research reports, and on interviews with stakeholders from the finance sector, energy efficiency practitioners and more. We suggest that following the withdrawal of the Green Deal, there is a need to reconsider the framing of policy for household energy efficiency improvements, and examine three potential aspects of a new framing: energy efficiency as infrastructure; new business and financing models for energy efficiency provision; and decentralised financing institutions for energy efficiency investment.

This would require a long-term commitment from government on energy efficiency, and a need to ensure that projects are attractive and investable from both householders and investors’ perspectives. We conclude that there are important roles for government in any large scale initiative for energy efficient retrofitting of UK homes, even if the mechanisms are market based. These includes signalling long-term policy consistency and reducing risks for financial investment, and intermediating between finance and energy efficiency projects.

Item Type: Reports and working papers (Working Paper)
Keywords: energy efficiency, energy policy, green finance, demand side management (DSM), infrastructure
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
School of Business, Management and Economics > SPRU - Science Policy Research Unit > SPRU Working Paper Series
Research Centres and Groups: Sussex Sustainability Research Programme
The Sussex Energy Group
Subjects: H Social Sciences > HB Economic theory. Demography > HB0801 Consumption. Demand > HB0820 Household consumption. Consumer demand
H Social Sciences > HG Finance > HG4001 Finance management. Business finance. Corporation finance
H Social Sciences > HM Sociology > HM0701 Social systems
Depositing User: Noam Bergman
Date Deposited: 13 Jul 2018 08:26
Last Modified: 03 Jun 2019 11:46
URI: http://sro.sussex.ac.uk/id/eprint/77116

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Project NameSussex Project NumberFunderFunder Ref
Research Centre on Innovation and Energy DemandG1020RCUK-RESEARCH COUNCILS UKEP/K011790/1