An economic appraisal of local energy conservation schemes

Abstract

This paper presents an economic appraisal of some work carried out in the homes of low-income families by local energy conservation schemes under the auspices of Neighbourhood Energy Action. Low-income families with their proportionately high expenditure on fuel and relatively low energy efficient homes are hard hit by energy pricing policies and unable to respond to government measures which seek to encourage energy conservation. Local energy conservation schemes may be seen as attempting to fill this gap left by general government policy. This paper concentrates on the economic appraisal from the perspective of the client households of the schemes and a model is developed of the benefits of energy conservation work. In connection with the latter, it is argued that it is crucially important to distinguish carefully between delivered energy and energy service.