New directions for household energy efficiency: evidence from the UK

The market rarely delivers energy efficiency improvements spontaneously, as there is no market push. Consumers are not providing a pull towards energy efficiency, usually because they are ignorant of (or indifferent to) the range on the market, or the energy implications of their purchases. Whilst consumers are concerned about climate change and generally understand the causal role of fossil fuels, they believe either that they have done everything or that one person cannot make a difference. Without a positive design focus from manufacturers or a clear demand from consumers, no part of the market will deliver energy efficiency naturally: policy has to provide the drive. Within the UK, the opportunities to introduce policies based on higher energy prices are constrained by the impact these have on low-income households. This means that product policy (market transformation) has to be the main delivery mechanism for domestic energy efficiency in the UK. The policies adopted so far in the UK and EU have been successful, with existing products, but have not prevented the development of new, profligate equipment. This limited success demonstrates the need for European policy to be more forceful and for policy to involve engagement with manufacturers about the products they are planning to introduce. To motivate consumers, policy should focus on carbon and incorporate feedback. Without these developments, and considerably more activity by the European Commission and Member States, energy efficiency will not contribute its potential to the UK target of 60% reduction in carbon dioxide emissions by 2050.