11.10.06 :: Terrence Aschoff, Manager CHRANZ

The Centre for Housing Research, Aotearoa New Zealand (CHRANZ) has released today research that investigates the effect of prices, incentives and regulations on energy efficiency within households, and recommends options for regulatory and market-based instruments that will further encourage greater levels of residential energy efficiency in New Zealand. The research by Taylor Baines and Associates was jointly funded by CHRANZ and Building Research, from the Building Research Levy.

Ian McChesney, one of the report authors, said “this study presents a range of specific measures that could be taken to significantly improve household energy efficiency in New Zealand, increase the associated benefits and reduce adverse environmental effects. Whatever other initiatives are taken to develop a sustainable energy system, improving the energy efficiency of our housing will complement them and be a positive and cost-effective risk management strategy.”

The key findings include:

New Zealand is lagging behind other developed countries in improving household energy efficiency due to its relatively mild climate, historically cheap energy, institutional and behavioural inertia, and a historic lack of strong Government leadership. The consequences of this include a lack of widespread experience of locally successful programmes to build on, increasing carbon dioxide emissions attributable to the residential sector, and a failure to adequately heat a significant proportion of our houses.

The application of regulations has been inconsistent, although there are signs this may now change, and the history of incentives in New Zealand has been stop-start. New Zealand households have benefited from the introduction of energy efficient products – from household appliances to new heating systems – through international market mechanisms. However some segments of the market remain relatively untouched, mainly for financial reasons.

Overseas experience suggest it is the mix of market mechanisms, incentives and regulations, supported by information and appropriate institutional responses working together and targeting different parts of the market that provide the recipe for success.

The household sector is responsible for 13% of the nation’s energy consumption, including 35% of electricity consumption. Current scenarios predict ongoing increases in energy demand of about 1.5-2% per annum as a result of trends in income, expectations and demographic change. A continuation of current trends is unlikely to lead to investment in substantial residential energy efficiency measures.

It is recommended that policy design and programme delivery would benefit from a focus on outcomes – such as air quality, CO2 emissions, healthy indoor temperatures and energy security – and a “whole of Government” approach. Key areas in which energy efficiency efforts should be focussed are new dwellings, existing dwellings and appliance standards.

A full copy of the research report is available online. A copy of the CHRANZ Research Bulletin is available online.

For further information please contact:

Terrence Aschoff
CHRANZ
terrence.aschoff@chranz.co.nz
Phone: 04 439 3326

or

Ian McChesney
mcchesney@inet.net.nz
Phone: 027 412 8104