Heterogeneous impacts of building codes on residential energy demand

Official URL: https://dx.doi.org/10.1016/j.eneco.2024.107336

In this study, we assess the tangible effects of building energy efficiency standards, a prevalent residential energy efficiency policy globally. Employing comprehensive household-level data (N=84,864) from Turkey, we analyze the heterogeneous impacts of building codes on the energy consumption of houses equipped with diverse heating technologies. Our findings reveal that, on average, building codes result in an approximate six percent reduction in heating energy demand for houses constructed after the regulation. Notably, this effect is statistically significant solely for homes featuring collective central heating systems within multi-family buildings. Conversely, the policy has no significant impact on energy demand for houses using stoves, individual boilers, or electricity-based heating systems. We suggest that the aforementioned outcome may be partially attributed to potential “rebound” and “pre-bound” effects stemming from the decreased heating costs in newer dwellings. Moreover, the observed influence on dwellings equipped with collective central heating systems can be attributed to the compulsory installation of individual meters in newer constructions. This incentivizes households to limit their energy consumption when compared to older properties where heating costs are distributed evenly among residents. These findings underscore the importance of behavioral interventions in shaping effective energy-saving policies. In conclusion, our results suggest that the effectiveness of residential energy efficiency policies may vary across countries, contingent on the distribution of heating systems in the building sector and a country's economic development level.