Examining the decision-making processes behind household energy investments: A review

Major energy-relevant investment decisions by households remain a large but underdeveloped opportunity for reducing energy consumption globally. Research into these decisions, however, has not been cumulative. We reviewed 26 empirical studies, which examined a variety of such decisions in multiple investment domains, examining a variety of explanatory variables, using various methods. We distinguished 17 domains of energy-relevant investment decisions covering retrofit measures (e.g. insulation) and renewable energy systems (e.g. photovoltaic energy). We identified six types of explanatory variables considered in the studies: demographic/housing characteristics/location of residence (I), decision-maker dispositions (II), beliefs about consequences for (III) and beyond (IV) the household, social influences (V) and policy measures (VI). Energy-relevant investment decisions were often associated with beliefs about consequences for and beyond the household and with receiving energy consulting and financial incentives, although the effectiveness of financial measures appears to depend on how they are implemented. Associations between energy relevant investments and several other explanatory variable categories were rare or ambiguous.