The diffusion of energy efficiency innovations among residential consumers

Abstract

The deregulation of New Zealand's retail energy markets was expected to provide energy efficiency gains through increased competition between demand-side and supply-side options. This has lead to energy efficiency gains in the commercial and industrial sectors, but there have been no substantial energy efficiency improvements in the domestic sector. This thesis uses a diffusion theory framework to investigate the rate of diffusion of energy efficiency innovations among residential consumers in New Zealand, and makes recommendations on how the rate of diffusion may be increased. Four models were developed to compare potential adopters of two energy saving innovations at two stages of the adoption process. These models allowed comparison to be made with respect to the roles of the perceived attributes of the innovations, the communication channels through which information disseminated and a range of contextual variables. The models were given logit specifications and maximum likelihood estimates were obtained using cross-sectional data from Christchurch households. A key finding was that the perceived attributes were important in problem recognition, but that it was the nature and number of the communication channels which differentiated adopters from rejectors. It was recommended that energy efficiency programmes centre on the development of inter-personal communication strategies and increased feedback on energy use, rather than price subsidies, to increase the rate of diffusion of energy efficiency innovations among residential consumers.