Re-assessing the economic and analytical tools that measure and optimize households’ energy-efficiency improvements

Since the Arab oil embargo of 1973, technologies associated with residential energy efficiency have developed from applications unfamiliar to building and remodeling contractors to recognizable techniques required by building codes. Codes specify minimum levels of energy efficiency, and installing energy-efficiency measures that go beyond code specifications have economic and environmental ramifications. Commonly used decision-making tools regarding energy-efficiency improvements for consumers are described, along with some of the pitfalls associated with these analytical methods. The purpose of this paper is to provide an argument for expanding the evaluation techniques related to energy-efficiency improvement upgrades within the home. An alternative method of evaluating energy-efficiency upgrades is proposed, which incorporates measures beyond simply monthly cost savings such as growth in house price attributed to energy-efficient upgrades.