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This article presents a methodological approach for incorporating household consumption characteristics and investment choices into energy efficiency policy models. The approach used is based on country-level stated preferences survey for evaluating consumer decisions and attitudes toward energy efficiency. The decision-making process was analyzed and modeled with logistic regression and applied onto the existing single-family housing stock. By applying the described framework, policymakers, or any other subsidy providing authority aiming to reach specific energy savings target, can obtain the distribution of financial incentives among different income classes. The developed model provides a framework for cost minimization and energy saving maximization. The model provides the minimal level of subsidies needed to achieve energy savings goals or maximum level of energy savings possible with a predefined budget for energy subsidies. The model accounts for consumer disaggregation and all results are provided per expenditure groups. [ABSTRACT FROM AUTHOR]

Energy efficiency is recognised as a key strategy to tackle three energy-related challenges – climate change, energy security and economic development – at the least cost to the society. In the recent years of the economic downturn, it gained even more relevance in the developed countries as there is more than ever the need to decouple economic recovery and growth from energy consumption. However, despite this formal recognition, energy efficiency remains the least understood and the most neglected feature of overall energy policy. Despite the substantial efforts made to develop sound energy efficiency policies, the desired effects in terms of achieved energy savings are lacking. The phenomenon is known as energy efficiency gap and its persistence was the main driver of this research. The aim of the research was to examine the causes and propose solutions for bridging the gap. Therefore, ideal policy making cycle is defined connecting design, implementation and multiple criteria evaluation of policy instruments’ impacts in closed, repetitive loop. Concept of energy efficiency market was introduced as a basis for policy making, enabling better understanding of the overall environment where policy needs to be implemented. Paper deals with the concept of energy efficiency market. It discusses the fundamental aim of energy efficiency policy – to achieve market transformation towards more efficient products and services. It presents market barriers that call for policy interventions, but upgrades the list of usually addressed barriers with behavioural and societal aspects of energy efficiency related decisions. Established methodology for energy efficiency market assessment includes upgraded model of barriers to energy efficiency. Focus of this paper is how to establish a model of energy efficiency market and to upgrade exisitng model of barriers to energy efficiencies to describe the reality better as to be a basis for policy instruments design. [ABSTRACT FROM AUTHOR]