Valuing improvements in comfort from domestic energy-efficiency retrofits using a trade-off simulation model

There are a number of stimuli behind energy efficiency, not least the Kyoto Protocol. The domestic sector has been highlighted as a key potential area. Improving energy efficiency in this sector also assists alleviating fuel poverty, for research is now demonstrating the strong relationship between poor domestic thermal efficiency, high fuel poverty and poor health and comfort status. Previous research has modelled the energy consumption and technical potential for energy saving resulting from energy-efficiency upgrades in this sector. However, there is virtually no work evaluating the economic benefit of improving households’ thermal comfort post-retrofit. This paper does this for Ireland using a computer-simulation program. A dynamic modelling process is employed which projects into the future predicting the extent to which energy savings are forgone for improvements in comfort. 2003 Elsevier Science B.V. All rights reserved. JEL classifications: C88; Q41