The role of personal and environmental factors in rural homeowner decision to insulate; an example from Poland

Abstract

The paper's objective is to quantify factors influencing a rural homeowner's decision to invest in exterior insulation to improve energy efficiency, lower heating costs, decrease air pollution, and reduce ash disposal and time spent monitoring coal-burning stoves. The study estimates a probit decision equation using survey data collected from an area lagging in economic development and calculates decision probability change in response to a variety of homeowner characteristics, perceived importance of issues related to energy efficiency, and location. The resulting calculation of probability changes on choosing to invest in external insulation show that respondents with higher education had a 6.4% higher probability of making the decision to invest in insulation, but the probability decreased by 11.2% for every additional person added to the household. Residents with the lowest incomes had a relatively higher probability to insulate a house than those with more income, but being a farmer decreased the probability by 60.7%. Energy-saving attitudes reflected in recent purchase of energy-efficient household appliances had a 41.2% higher probability to choose exterior insulation. Favoring to pay more for locally-generated solar energy increased the probability of investing in exterior insulation by 16.2%, while those who wanted the hot water supply independent from electricity had a 24.2% higher probability. The quantified effects facilitate targeting rural households and increasing their participation in recently introduced programs aimed at energy-efficiency.