Effect of Thermal Improvements in Housing on Residential Energy Demand

Abstract

Many estimates of the savings resulting from energy conserving modifications to a house do not take into account the role that such modifications play in the production of house warmth. Consumers can be expected to take some of these savings in increased house warmth as well as in lower demand for residential energy. The model estimated in this paper shows that when this effect is accounted for savings in energy due to energy conserving modifications are considerably less than anticipated without this effect.