5 Star Energy Efficient Housing – Building Regulation Delivers Sustainability Outcomes

Abstract

Australians are responsible for the world’s highest per capita greenhouse gas emissions, 27% higher than produced by US citizens and more than double the average for other industrialised countries. With only 25% of the nation’s population, Victorian residents also produce almost 60% of greenhouse emissions attributed to the heating and cooling of Australian homes. In response to this situation, the Victorian government introduced an important environmental initiative for new housing in 2003: the 5 Star Standard. This standard is designed to deliver signifi cant reductions in Victoria’s greenhouse gas emissions by improving the energy effi ciency of new homes. Sophisticated economic analyses were undertaken to validate the government’s decision to introduce these new regulations. These studies examined the economic impacts of upgrading the energy effi ciency of new houses and apartments from both a homeowner perspective and at a societal level through macroeconomic modelling of the Victorian state economy. Results of the analyses demonstrate that the 5 Star Standard will not only deliver planned greenhouse gas abatement outcomes, but also signifi cant economic benefi ts for the state’s economy. These economic benefi ts represent a remarkable outcome for what is essentially an environmental regulation. To maintain consumer and industry confi dence in the house energy rating process on which the regulation is founded, rigorous administrative arrangements have been established to certify both the energy rating software and the technical specialists who assess individual house designs.