J. Peter Clinch

Cost-benefit analysis of domestic energy efficiency

There are a number of driving forces behind energy efficiency. In recent times, the Kyoto Protocol has been the most prominent in bringing energy efficiency to the fore. In some countries, the domestic sector has been highlighted as an area which has a significant potential for improvement. However, prior to the implementation of large-scale energy-efficiency programmes, it is important to evaluate whether they make economic sense. Heretofore, most economic evaluations of energy-efficiency programmes have concentrated purely on the associated costs of the programmes and the energy savings that result. At best, reductions in environmental benefits are also estimated, but rarely are other benefits calculated, such as increases in the levels of household comfort and improvements in human health. This paper endeavours to provide a template for ex ante economic evaluations of domestic energy-efficiency programmes. A comprehensive cost–benefit analysis of a programme to retrofit various energy-efficiency technologies and heating upgrades to the Irish dwelling stock is taken as a case study. The study demonstrates how energy savings, environmental benefits, and health and comfort improvements may be assessed. In so doing, it provides insights into the methodological difficulties and solutions for assessing the social efficiency of large-scale domestic energy-conservation projects.

Quantifying the severity of fuel poverty, its relationship with poor housing and reasons for non-investment in energy-saving measures in Ireland

Fuel poverty has generally been calculated by quantifying the number of households spending in excess of 10% of income on home heating. This definition has a number of significant practical and scientific limitations. This paper employs self-reported data to calculate the severity of fuel poverty in Ireland to identify chronic fuel-poor households from occasional sufferers. It also assesses domestic energy-efficiency levels. Ireland is a useful case study as it demonstrates the highest variations in seasonal mortality and morbidity in northern Europe, both of which are associated with fuel poverty. Ireland is also experiencing extreme difficulties meeting its environmental emissions targets in light of recent spectacular economic growth. Reducing fuel poverty would lower energy-related emissions, assisting policy makers achieve these challenging targets. Furthermore, little empirical research has been undertaken on fuel poverty in Ireland. This paper identifies key social groups at risk by conducting detailed socio-economic and socio-demographic analyses. The relationship between fuel poverty and adverse housing conditions (damp, condensation) is also examined. Moreover, the reasons behind householders not investing in energy-saving measures are reported. The results show that Ireland suffers from similar levels of fuel poverty as the UK, with low-income households suffering the greatest. The key policy implications are outlined.

MODELLING WINNERS AND LOSERS IN CONTINGENT VALUATION OF PUBLIC GOODS: APPROPRIATE WELFARE MEASURES AND ECONOMETRIC ANALYSIS*

Contingent valuation is now the most widely used method for valuing non-marketed goods in cost-benefit analysis. Yet, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. This can result in significant errors in policymaking. This paper examines the importance of this, explores appropriate welfare measures for assessing losses and gains, demonstrates how these can be elicited explicitly, highlights the sensitivity of the results of such studies to the econometric specification employed and suggests ways of dealing with it. Finally, the implications for policy are examined.

Fuel poverty, thermal comfort and occupancy: results of a national household-survey in Ireland

Fuel poverty is perhaps the strongest adverse social impact resulting from the inefficient consumption of energy in the domestic sector. Despite considerable research examining the plight of those affected, there has been very little empirical work examining the relationship between fuel poverty and thermal comfort and the extent of indoor cold strain resulting from inadequately heated housing. Furthermore, the effects of fuel poverty on household occupancy have not been addressed formerly. This paper employs a new national household survey of Ireland--a country with a level of fuel poverty similar to Britain--to examine these key issues. Both self-reported and objective measures of thermal comfort are utilised, and the study pays particular attention to the age profile of those affected by thermal discomfort. The results show, inter alia, that two-thirds of fuel-poor householders demonstrate cold strain, and over half of elderly households endure inadequate ambient household temperatures during winter.

Afforestation in Ireland — regional differences in attitude

Abstract The Irish Government proposes to double the Irish forest estate from its current level of 9% of the land area by the year 2030. This paper reports the results of surveys which show strongly contrasting preferences, perceptions and attitudes between two case study populations, one of which is discovered to be very positively disposed towards forestry, the other, with an agricultural economy, found to be highly critical. Such diverging relationships highlight the need to develop regionally applicable forestry policies and strategies rather than using those which are generic and can be crudely applied at a national scale.

Modelling improvements in domestic energy efficiency

Abstract There are a number of driving forces behind energy efficiency. In recent times, the Kyoto Protocol has been the most prominent in bringing energy efficiency to the fore. In some countries, the domestic sector has been highlighted as an area that has a significant potential for improvement. This paper describes the development of a computer model to enable a bottom-up assessment of the technical potential for energy saving in the domestic sector using Irelands dwelling stock as a case study. Specifically, the national savings in energy costs, CO 2 and other environmental emissions, as well as the capital costs resulting from the implementation of various energy-saving retrofit measures across the dwelling stock, are predicted. A feature of the model is that a dynamic modelling process was used to project into the future to predict the extent to which energy and emissions savings might be forgone in exchange for improvements in comfort and health. The computer model is used to assess the physical costs and benefits of a large-scale domestic energy-efficiency programme. The results of the assessment are presented, difficulties in the modelling process are discussed and areas for future research highlighted.

Rural change and individual well-being the case of Ireland and rural quality of life

Much of rural Europe has witnessed vast changes over the past two decades, including major demographic and economic change. The question of how these changes have affected individual well-being and quality of life remains largely unanswered. This paper aims to shed light on this topic by employing both qualitative and quantitative research methods in the analysis of rural quality of life in Ireland, including focus groups, locally-specific surveys and two representative surveys of individuals carried out in 2001 and 2007. We use the respondents’ self-reported life satisfaction level as a proxy for their well-being to examine the determinants of quality of life and also examine how attitudes have changed over this period. Results show a consistently high life satisfaction in rural Ireland. The greatest changes are witnessed in attitudes to the provision of facilities and services. Respondents’ perceptions of the benefits and limitations of rural living remain constant between the two periods, focusing on quality of life and environmental issues. However, the main problems of rural living have shifted away from the cost of housing to access to healthcare and public transport. Issues that are found to be important at the local scale include economic indicators (for example, security of income, home ownership), dwelling characteristics, social factors (for example, belonging to the community) and environmental amenities (for example, access to green space, good-quality environment). The importance of these issues is born out by the analysis at the national scale. The paper concludes by exploring the policy implications of these findings.

Valuing improvements in comfort from domestic energy-efficiency retrofits using a trade-off simulation model

Abstract There are a number of stimuli behind energy efficiency, not least the Kyoto Protocol. The domestic sector has been highlighted as a key potential area. Improving energy efficiency in this sector also assists alleviating fuel poverty, for research is now demonstrating the strong relationship between poor domestic thermal efficiency, high fuel poverty and poor health and comfort status. Previous research has modelled the energy consumption and technical potential for energy saving resulting from energy-efficiency upgrades in this sector. However, there is virtually no work evaluating the economic benefit of improving households’ thermal comfort post-retrofit. This paper does this for Ireland using a computer-simulation program. A dynamic modelling process is employed which projects into the future predicting the extent to which energy savings are forgone for improvements in comfort.

Assessing the Relative Merits of Development Charges and Transferable Development Rights in an Uncertain World

Traditionally, regulatory instruments have been used to achieve planning objectives. However, emerging market-based policy instruments, such as transferable development rights, a quantity-based approach, and development charges, a price-based approach, are now being implemented in some jurisdictions. Despite this, there has been no comparison in this context of the relative effectiveness, or potential differences in outcomes, that these different market-based instruments can achieve when the benefits and costs of development are uncertain. This paper shows that, in the presence of uncertainty, significantly different outcomes in terms of overall welfare and the social distribution of costs and benefits of development can result, depending on which instrument is chosen. Therefore, careful analysis of instrument choice is required to improve overall efficiency.

The Impact of Perceived Flood Exposure on Flood-Risk Perception: The Role of Distance

Natural hazards, such as major flood events, are occurring with increasing frequency and inflicting increasing levels of financial damages upon affected communities. The experience of such major flood events has brought about a significant change in attitudes to flood-risk management, with a shift away from built engineering solutions alone towards a more multifaceted approach. Europes experience with damaging flood episodes provided the impetus for the introduction of the European Floods Directive, requiring the establishment of flood-risk management plans at the river-basin scale. The effectiveness of such plans, focusing on prevention, protection, and preparedness, is dependent on adequate flood awareness and preparedness, and this is related to perception of flood risk. This is an important factor in the design and assessment of flood-risk management. Whilst there is a modern body of literature exploring flood perception issues, there have been few examples that explore its spatial manifestations. Previous literature has examined perceived and real distance to a hazard source (such as a river, nuclear facility, landfill, or incinerator, etc.), whereas this article advances the literature by including an objectively assessed measure of distance to a perceived flood zone, using a cognitive mapping methodology. The article finds that distance to the perceived flood zone (perceived flood exposure) is a crucial factor in determining flood-risk perception, both the cognitive and affective components. Furthermore, we find an interesting phenomenon of misperception among respondents. The article concludes by discussing the implications for flood-risk management.