Heterogeneous Preferences and Investments in Energy Saving Measures

We investigate whether risk, time, environmental, and social
preferences affect single family homeowners’ investments in energy
efficient renovations and energy quality of their house using
established experimental measures and questionnaires. We find that
homeowners who report to be more risk taking are more likely to
have renovated their house. Pro-environmental and future-oriented
renovators, i.e. renovators with lower discount factors, live in
homes with higher energy efficiency. Controlling for the energy
efficiency of houses, we further find that energy consumption as
measured by heating and energy costs are lower for future-oriented
and pro-environmental individuals. Social preferences measured in a
dictator and a generosity game play a mixed role for investments in
energy efficiency and energy consumption.