From policy to practice: The role of national policy instruments and social barriers in UK energy efficiency adoption in households

This paper investigates the adoption trends for energy efficiency (EE) measures in the UK residential sector and the extent to which national-level EE policies impact households' willingness to adopt EE measures and technologies. Using survey data from a representative sample of more than 2000 households across the UK and discrete choice models, this research examines the preferences given to different policy schemes such as tax rebates, grants, loans, easing administrative barriers or information campaigns; and its role on household decisions to adopt EE measures. We find that national-level policies in the form of grants and subsidies, information campaigns on savings and a reduction of administrative barriers would positively impact the probability of a household to adopt such measures. Differences are found between the policy drivers in the adoption of low-cost EE measures e.g. loft insulation vs. High-cost EE measures e.g. heat pumps. Importantly, our results highlight the role of policy mixes in fostering the adoption of EE measures in UK. In combination with other policies, tax credits can be effective in fostering the adoption on EE measures. Our findings have implications for policymakers seeking to enhance the effectiveness of EE policies and address social challenges to promote sustainable energy use. • Financial incentives, like grants and subsidies, are central in persuading UK households to adopt energy efficiency measures. • Importantly, streamlined administrative processes are key to encouraging household energy efficiency upgrades. • Different policies are effective depending on the cost i.e. low-cost vs. high-cost, of the measures to be adopted. • Combining policies like tax credits, grants, or info campaigns could promote energy efficiency and overcoming social barriers.