Energy Consumption and the Effects of Energy Efficiency Measures Based on Analysis of NEED Data

31 August 2011
By Daniel Radov

In 2011, the UK Department of Energy and Climate Change (DECC) developed the National Energy Efficiency Data-framework (NEED), a large database containing detailed information about household energy consumption and household characteristics. The dataset was developed to make possible in-depth analysis of household energy use to inform and evaluate policy analysis.

DECC commissioned a NERA team, led by Associate Director Daniel Radov, to use the NEED dataset to estimate the effectiveness of certain key energy-efficiency measures in reducing household energy consumption. The NERA analysis focused on different types of insulation (including cavity wall insulation and loft insulation) as well as new boilers. NERA also was asked to use the data to develop a model for predicting household energy consumption, based on household and property characteristics, using a range of econometric techniques that take advantage of the panel nature of the dataset.

In this report, NERA summarizes and discusses the features of the data, considers a variety of ways to estimate the impacts of energy efficiency measures, and then presents models of overall energy demand. The report contributes to a more robust evidence base for assessing the impacts of energy-saving measures, and to understanding household energy demand more broadly. NERA's analysis is relevant to a wide range of past, present, and future government policies and regulations in the UK -- including the EEC, CERT, Warm Front, Renewable Heat Incentive, Building Regulations, and the Green Deal -- and internationally.