Driving forward a low-carbon built environment: The impact of energy context and environmental concerns on building renovation

Abstract

The main focus of this paper is to understand the behavioral obstacles to investing in energy efficiency in the French residential sector. We pay particular attention to the role of environmental concerns and perception of energy context. To achieve this, we develop a nested logit model to investigate the determinants of energy renovation behavior. The empirical analysis is based on an original survey conducted in 2018, which represents French homeowners. The findings of the study reveal several important insights. Firstly, environmentally conscious individuals are significantly more likely to undertake energy renovation measures. Secondly, in line with previous research, the analysis confirms that risk aversion decreases the likelihood of investing in energy efficiency measures. Thirdly, sociodemographic factors and dwelling characteristics also play a role in shaping energy renovation behavior. Overall, these results have implications for policymakers, emphasizing the importance of reducing the risk faced by households in order to promote energy efficiency investments and facilitate the transition to a low-carbon economy.