Households transport-home energy conservation strategies in response to energy price policies : a stated adaptation experiment based on portfolio choices and cross effects designs

This paper explores consumer investment choice in long-term energy conservation technology and assesses energy saving behaviour in the housing and transportation domains. The long-term energy conservation choice problem is conceptualized as a portfolio choice problem. A cross effects choice design is developed in which respondents were shown one or more alternate ways to reduce their current energy consumption: (1) investing in new technology in the house, such as solar panels; (2) exchanging the current car for a more energy efficient car; (3) buying a new energy-efficient car, such as EV or solar car; (4) moving house to reduce current travel distances. To help respondents linking these options to their current energy consumption, a new Web-based survey system (SINA) to implement and administer stated adaptation experiments was developed. 572 respondents completed the survey. A random parameters logit model is estimated to predict the probability of choosing a particular portfolio of energy-saving options. Estimation results indicate that individuals from different socio-demographic groups exhibit varied preferences. The saving option characteristics, especially cost related characteristics have significant effects on individuals' preferences. Moreover, the energy pricing policies had showed directly or indirectly effects on individual's preferences of energy reduction alternatives.