3

At its simplest, you just look at the cost of capital: if the household would have to borrow to pay the debt, then what's the borrowing rate? If they are currently saving, what interest rate would they forego by spending on the retrofit instead of saving? The benefits of retrofit usually extend beyond the simple savings on energy bills, though. When it's ...


2

I know this is a old post, but since I found it and I know the answer I might as well share it. I would go further than the first component, but it also depends on how much of the variance is actually explained within the component. There is two approaches that I use when determining which components I am using. The rule of thumb is to use and component ...


2

It may be more "profitable" to present your analysis here for detailed discussion. It is particularly relevant to tell us what sort of retrofit you are considering (Insulation upgrade? Triple-pane argon windows? Tankless water heater? Solar plus storage?) as well as the particulars of your local energy market. The prices you face as a consumer depend on ...


1

Two things: The price reduction on the polluting good helps consumers of the polluting good, but also hurts producers of the polluting good. This results in less output and, in the extreme, market exit by the least-efficient polluting firms. A full analysis would be needed to show which effect wins in the end as far as overall emissions go. This is ...


1

Your intuition is correct, actually switching from dirty good to clean good will also increase demand for clean good so price there might increase as well. However, this does not mean doing some voluntary change could not help as it also depends on how the quantity demanded changes with price (elasticity of demand). So switching is not necessarily unhelpful. ...


Only top voted, non community-wiki answers of a minimum length are eligible