Scenario-based economic and environmental analysis of clean energy incentives for households in Canada: Multi criteria decision making approach

Abstract

Abstract Household energy consumption and carbon footprints change with household characteristics such as type of residence, energy system performance, vehicle performance, and users' behavioral patterns. Accordingly, alternative energy technologies, such as clean electricity, hydrogen fuel cells, and energy efficient interventions, are being adopted in many parts of the world to reduce the residential, industrial, and transportation emissions. This paper presents a comprehensive research framework to identify the most desirable building retrofits and incentive schemes for Canadian households. Globally available incentive policies for low-emission vehicles and locally available retrofit options for single-family detached houses were identified during this study. A decision support tool based on life cycle thinking was developed to assess economic parameters, such as capital investment and annualized consumer cost, and environmental parameters such as greenhouse gas emissions. In order to rank and select the most desirable building retrofit, the TOPSIS ranking method was used. The linear programing graphical method was used to select the best incentive policy for low-emission vehicles. Finally, scenario analysis was used to compare different households based on regional economic and environmental characteristics. Provinces which have low-emission electricity grids such as Manitoba, British Columbia, and Quebec can primarily focus on incentives for electrified transportation. Additionally, the incentives for retrofits such as greener appliances and heating, ventilation, and air conditioning systems would also significantly reduce building carbon footprint. Conventional residential buildings with fossil fuel vehicles are more desirable for provinces like Saskatchewan, Alberta, and Nova Scotia which have high-emission electricity grids. Based on the outcomes of this research, a scientific incentive planning and management approach considering regional economic and environmental characteristics was introduced.