PENNY–Psychological, Social and Financial Barriers to Energy Efficiency, Deliverable No 3.1 Report on the impact of energy literacy on the level of energy efficiency
In this report, we analyse the level of energy efficiency in the use of electricity in the European residential sector using a cross-sectional dataset comprised of 1620 observations from Italian, Dutch and Swiss households observed in 2016. To do this, we estimate an electricity demand frontier function using a stochastic frontier approach. The demand frontier function reflects the minimum electricity needed to produce a predefined level of energy services. This benchmarking analysis estimates an efficiency index for each household. The empirical results show that the residential sector in these three European countries could save approximately 25-30% of its total electricity consumption on average if it improves the level of efficiency in the use of electricity. These figures are in line with recent studies for Switzerland and for the US residential sector.