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Barriers to the adoption of energy efficiency measures in
Mostaganem, Algeria
Abstract
consumption. In order to reduce and address this consumption along with the
low. In 2018, EEIMs have been implemented in 4000 houses. This number
EEIMs in 100.000 houses per year. The present paper, accordingly, attempts to
study. It was found that the five greatest barriers to the adoption of EEIMs
were: (1) the lack of subsidies and rebates on energy efficient equipment, (2)
the high initial prices of energy efficient equipment, (3) the lack of techniques
and tools for the estimation of saved energy, (4) the unwillingness to borrow
INTRODUCTION
for a high level of CO2 emissions (Denker, 2014). An effective way to reduce
Investment Measures (EEIMs) which use less energy while offering the same
level of service (Prete et al., 2017). In 2016, the Algerian government has
measures. This program aims at insulating 100.000 houses per year and
installing 100 000 solar water heater per year (APRUE, 2016). Nevertheless,
with the low prices of energy due to various subsidies, Algerian households
were not conscious of their energy consumption, and the government could
not meet this objective yet. Currently, due to the economic crisis, the Algerian
Barriers to energy efficiency
parts of Algeria varies greatly due to its vast geographical expanse. Therefore,
located in Northern Algeria (see Figure 1). Mostaganem area has been
However, despite the high prices of energy and a favourable policy context,
the adoption of EEIMs of Algerian homeowners is too low. Indeed, for 2018,
the national agency for the promotion and the rationalization of the energy
use (APRUE) has announced that EEIMs have been implemented in 4000
houses. This number represents only 4% of the government target which is the
indicates that the main drivers and barriers to the adoption of EEIMs are not
adoption of EEIMs have been conducted in Algeria. To help close this gap,
the objectives of the study outlined in this paper are: (1) to identify and rank
the critical barriers that hinder the adoption of EEIMs of Algerian single-family
homeowners, (2) to investigate the underlying relationships between these
personal and contextual variables. For the conduction of this research study,
LITERATURE REVIEW
This section will review studies of drivers, barriers, and factors influencing the
(Prete et al., 2017). A stream of research has analysed factors that influence
According to Nair et al. (2010), these factors can be categorized within two
groups; contextual factors (e.g. homeownership, the age of the house, etc.)
and personal factors (e.g. education, age, income, etc.). An early study by
Cameron (1985) using individual household data from the U.S indicated that
retrofits such as insulation and storm windows. Achtnicht and Madlener (2014)
studied the key drivers and barriers to the adoption of energy retrofit actions
Barriers to energy efficiency
indicate that the income, energy cost savings, payback period, and
(WTP) for EEIMs of different types of technologies. Scarpa and Willis (2010)
renewable energy technologies in the UK. The results indicate that households
Štreimikienė and Baležentis (2015) studied the main drivers of WTP for
focus group approach with 100 participants. The results indicate that the lack
of information and environmental awareness play a crucial role in the WTP for
show that insufficient information regarding RES systems that can be used in
Another stream of research has focused only on the barriers that influence the
identified in the literature such as low energy prices, priority to comfort and
and Berker, 2013), incentives and regulations (Palm and Tengvard, 2011), the
Belloni, 2011), lack of expertise of the executive board (Nair et al., 2011), high
family homeowners using survey data. The findings indicate that energy-
roof), and general housing activities (e.g. building extensions). Ravetz (2008)
priority for UK homeowners when updating their homes. The findings indicate
lower fuel bills, and a lack of knowledge over payback periods are
Denmark. The findings indicate that the lack of knowledge and interest in the
topic, the uncertainty about both investment size and savings, lack of
Häkkinen and Belloni (2011) studied barriers and drivers for sustainable
building in Finland using literature review, inquiries, and interviews. The results
show that the main barriers for households’ to adopt EEIMs is the limited
knowledge about new technologies and their prices. Nair et al. (2011)
findings indicate that the lack of expertise of the executive board was
equipment, the low prices of energy in China, the lack of subsidies and
standard group. The main barriers for both groups were the lack of personal
research where only the barriers that influence the adoption of EEIMs of
conducted in Algeria. This study tries to fill this gap, the main objective of our
empirical study are: (1) to identify and rank the critical barriers that hinder the
METHODOLOGY
total of 150 owners of single-family houses were used for the study. The sample
variable (16 dependent variables have been considered in the survey) had
sample size was considered acceptable compared with the sample size of
Prete et al. ( 2017). Respondents who had the responsibility to decide the
adoption of EEMs were considered as the target population of the study. The
2018.
The questionnaire (in French) was divided into two parts (please see Appendix
[online supplemental data] for the English translation of the full survey). The
first part included the overarching aims of the research study and covered
house, etc.) and personal factors (e.g. education, age, income, etc.). The
second part detailed 16 possible barriers for the adoption of EEIMs of Algerian
literature (Häkkinen and Belloni, 2011) (Ravetz, 2008) (Nair et al., 2011)
(Mortensen et al., 2011) (Risholt and Berker, 2013) (Friedman et al., 2018). The
Likert scale, where 1 meant that the barrier was not important while 5 meant
that the barrier was very important. In order to identify potential practical
problems as well as problems with the survey design, a pilot study with 20
questionnaires preceded the main survey. The results of the pilot survey
Analytical procedure
The analysis of the collected data were conducted as follows: Reliability
Reliability analysis
consistency among the barriers in order to test the reliability of the five-point
Ranking analysis
In order to identify and rank the critical barriers to the adoption of EEIMs of
2016). The selection of the variable with the lowest standard deviation was
performed for the rank differentiation where two or more barriers had the
The personal and contextual variables were used for separating the
This section presents the outcomes of the analysis of the collected data and
presented in Table 1. The respondents were mainly men (62.7 %). 89 % of the
%) have a household’s monthly net income more than 300 us dollar (which
represents the average salary in Algeria). Most of the sampled houses (69.3 %)
Reliability analysis:
In order to test the reliability of the five-point scale, the Cronbach's alpha
barriers as indicated in Kim et al. (2016)and Chileshe et al. (2016). The five-
point scale has been found reliable as the 16 barriers presented a Cronbach's
alpha of 0.821, which was greater than the acceptable lower limit for the
Ranking analysis:
This analysis ranked the hindrance factors based on the value of their means
The respondents ranked the lack of subsidies and rebates on energy efficient
investment measures. Similarly, Dianshu et al. (2010) have indicated that the
the form of tax credits, loans, and rebates (Bouamama, 2013), the results
indicate that this policy is not sufficient and need to be improved in order to
The respondents ranked the high initial prices of energy efficient equipment
as the second hindrance. This result is in agreement with the findings of Yang
and Zhao (2015). The high initial prices of energy efficient equipment are
mainly due to the lack of local production in Algeria. Algerian suppliers import
energy efficient equipment from abroad which generates high initial prices
It is surprising to note that the respondents ranked the lack of techniques and
agreement with Du et al. (2014) findings that the lack of techniques and tools
for estimation of saved energy is one of the major barriers to the adoption of
The unwillingness to borrow money was ranked as the fourth hindrance by the
are not sufficient or are inappropriate for homeowners. In order to finance the
investment capacity and ability to pay off a debt. The unwillingness to borrow
money was also identified as important barriers in Stieß and Dunkelberg (2013)
energy efficiency measures was ranked as the fifth most important hindrance.
measures and their benefits and could pay for the energy efficiency
measures. However, they are completely helpless in the face of all the
The low energy prices of energy was not evaluated as a barrier that
and therefore was ranked last. This is because the energy bills become an
financial support to the energy sector, which use to assure in the past decade
very low energy prices. Consequently, the price of energy has increased by
20 percent and the Algerian households are now more attentive about the
varimax rotation was used (see Table 3). A Kaiser–Meyer–Olkin (KMO) test, as
the data. The KMO statistic is at 0.882, and the p-value of the Bartlett test was
(<.001). Both of them showed that the items in the scale were suitable for
factor analysis. The PCA groups the 16 variables around four components: (1)
barriers.
The first of the four components includes five barriers to the adoption of EEIMs,
future, the high initial prices of energy efficient equipment, the lack of
borrow money. This component accounts for the highest variance (16.9%) of
all the components and represents the major “Financial” barriers hampering
The second component accounts for 15.2 per cent of the total variance and
includes four important barriers that hinder the adoption of EEIMs, namely: the
This component explains 12.6 per cent of the total variance of the data. The
energy efficiency measures and their benefits, the lack of knowledge over
the payback periods, the lack of time to collect necessary information, the
component 2.
The limited knowledge about energy efficiency measures and their benefits
However, the result indicates that the respondents ranked this hindrance
fourteenth. This disagrees with Zundel and Stieß (2011) findings that uncertain
the eighth hindrance. This could be explained by the fact that the different
measures was not perceived by the respondents as a strong barrier and was
colleagues, or anyone who has invested in such measures. This disagrees with
Mortensen et al. (2011) findings that indicate the lack of example represents a
The last component includes the flowing barriers: the low energy prices, the
other measures and the perceived hassle of installation. These barriers were
ranked respectively 16, 15, and 11. This final factor accounts for 10 per cent of
hindrances for the adoption of EEIMs. These results are in agreement with the
findings of Nair et al. (2011) who also indicate that “Attitude towards energy
measures are a low priority compared to other measures “are not a serious
Friedman et al. (2018) and Stieß and Dunkelberg (2013) that “Attitude towards
energy efficiency improvements” barriers such as” lack of interested in energy
efficiency “are fairly important. The fact that homeowners have considered
hindrances might be because, for these homeowners, their energy costs are
Chileshe et al. (2016), the most common multivariate test is Wilks' Lambda.
In order to find the source of difference, univariate tests ANOVA are applied.
The results of the univariate tests indicate that there is a statistically significant
difference in the perception of the barrier “lack of financial resources” (P
0.001) between groups of homeowners segmented according to gender (see
Table 5).
Barriers to energy efficiency
Table 6 indicates that respondents who were female were more likely to
consider the lack of financial resources as a very important barrier to the
adoption of energy efficiency measures than respondents who were men.
This is in disagreement with Nair et al. (2010) findings that homeowners’
gender does not influence their preference for energy efficiency.
Furthermore, the results of the univariate tests indicate that there are
statistically significant differences in the perception of the barriers “the lack of
financial resources” (P< .001) and “the uncertainty about economic future”
(P< .001) between groups of homeowners segmented according to
household’s monthly net income (see Table 7).
Table 8 indicates that homeowners in the income group (605 - 760 $) and the
income group (760 $ and more) were more likely to find the financial
resources in order to invest in energy efficiency compared to other income
groups. While homeowners who had an annual income less than 150 were
the least likely to find the financial resources in order to invest in energy
efficiency. This is agreement with Herring et al. (2007) findings that
homeowners’ income affects the investment in energy efficiency.
Furthermore, homeowners in the income group (Less than 150 $) were more
likely to consider the uncertainty of the economic future as a very important
barrier compared to other income groups. Due to the precarious financial
situation of the income group (Less than 150 $), energy efficiency loans would
not be the right option. Therefore, funding in the form of subsidies and tax
reduction would be more appropriate.
More precisely, the results of the univariate tests (see Table 9) indicate that
there are statistically significant differences in the perception of the barriers
“Limited knowledge about energy efficiency measures and their benefits” (P
0.014) and “Lack of time to collect necessary information” (P 0.008) between
groups of homeowners segmented according to gender.
Table 10 indicates that respondents who were women were more likely to
consider the “Limited knowledge about energy efficiency measures and their
benefits” as an important barrier to the adoption of energy efficiency
measures than respondents who were men. This could be explained by the
fact that women do not access equally with men to the information about
energy efficiency measures (Clancy et al., 2004). However, this is in
disagreement with other studies that have reported no statistical relationship
between respondents’ gender and their perception of energy efficiency
(Sardianou, 2007).
Barriers to energy efficiency
Furthermore, respondents who were women were more likely to consider the
“Lack of time to collect necessary information” as an important barrier to the
adoption of energy efficiency measures than respondents who were men
(see Table 10). This could be explained by the fact that many Algerian
women juggle family obligations, domestic tasks and paid work, and don't
find time to collect necessary information about energy efficiency measures
(Clancy et al., 2004).
Sixteen barriers have been identified in this paper. Through the ranking
analysis, it was found that the five greatest barriers to the adoption of EEIMs
were: (1) the lack of subsidies and rebates on energy efficient equipment, (2)
the high initial prices of energy efficient equipment, (3) the lack of techniques
and tools for estimation of saved energy, (4) the unwillingness to borrow
money, (5) the difficulty of identifying, procuring, installing, operating, and
maintaining energy efficiency measures.
The principal component analysis was implemented in order to explore the
relationships among the 16 barriers. The PCA categorised the 16 barriers
around four components: (1) “Financial” barriers, (2) “Technological” barriers,
(3) “Lack of time and knowledge” barriers, (4) “Attitude towards energy
efficiency improvements” barriers.
The MANOVA and ANOVA analysis have indicated that there are differences
in our sample regarding the perception of the barriers to the adoption of
EEIMs. Especially, evidence for differences between groups that were
segmented according to gender as well as the household’s monthly net
income have been found. The results indicate that gender as well as the
household’s monthly net income significantly affect the respondents'
perceptions of the component “Financial” barriers. It was also found that
gender has a significant impact on the respondents' perceptions of the
component “The lack of time and knowledge” barriers. It should be noted
that for the components “Technological” barriers and the “Attitude towards
energy efficiency improvements” barriers” barriers no statistically significant
differences between any groups of homeowners have been found.
Fourthly, our empirical study showed that respondents who were female were
more likely to consider the barriers “Limited knowledge about energy
efficiency measures and their benefits” as well as “the lack of financial
resources” as a very important barrier to the adoption of energy efficiency
measures than respondents who were men. Therefore, it is of crucial
importance that the government implements financial incentives and
information instruments that adequately address women’s requirements. For
instance, the creation of energy efficiency groups and mentor programs that
focussed on women could support the provision of awareness raising and the
training of women about the energy efficiency measures and their benefits
(Clancy et al., 2004). Besides, the government could boost women’s direct
access to financial incentives through technical innovation and changes in
Barriers to energy efficiency
Finally, some limitations are worth mentioning. Since the study was conducted
in the area of Mostaganem in Algeria, the findings may not be generalised to
other geographical locations. Other studies in countries with similar context
such as Tunisia and Morocco could put our findings into a broader
perspective. Also, the survey focused mainly on the barriers to adoption to
the adoption of EEIMs. Similar studies that focus on other dimensions such as
motivations of Algerian homeowners for the adoption of EEIMs and their
perceptions on different incentives could be an interesting direction in future
research.
REFERENCES
investment measures
installation doesn’t
motivate them to
implement the efficiency
improvement
The uncertainty about 3.35 1.42 12
economic future
The lack of examples 3.32 1.53 13
The lack of knowledge 3.20 1.35 14
over the payback periods
The investments in energy 3.07 1.36 15
efficiency measures are
low priority compared to
other measures
The low energy prices 2.84 1.38 16
don’t motivate to
implement the efficiency
improvement
Component Variance
explained
1 2 3 4
(%)
The limited knowledge about
energy efficiency measures and 0.806
their benefits 12.6
The lack of knowledge over the
0.583
payback periods
The lack of time to collect
0.574
necessary information
The lack of examples 0.597
The lack of attractive products 0.689
The lack of techniques and tools
0.742
for estimation of saved energy
The lack of knowledge of 15.2
0.755
architects and installers
The difficulty of identifying,
procuring, installing, operating
0.689
and maintaining energy
efficiency measures
The high initial prices of energy
0.781
efficient equipment
The lack of subsidies and rebates
0.556
on energy efficient equipment 16.9
The lack of financial resources 0.825
Uncertainty about economic
0.788
future
The unwillingness to borrow
0.425
money
The Investments in energy
efficiency measures are low
0.629
priority compared to other
measures 10
The perceived hassle of
installation doesn’t motivate
0.553
them to implement the
efficiency improvement
The low energy prices don’t
motivate to implement the 0.709
efficiency improvement
Note. 'varimax' rotation was used
Table 5. Univariate tests with gender as an independent variable and the five
financial barriers as the dependent variables
Dependent Variable
Sum of Mean
df F p
Squares Square
Gender N Mean SD SE
The lack of financial Female 56 4.27 1.05 0.141
resources Male 94 3.63 1.20 0.124
Dependent Variable
Sum of Mean
df F p
Squares Square
Household’s monthly
N Mean SD SE
net income
The lack of financial 150 - 300 $ 13 4.08 1.320 0.366
resources 300 - 455 $ 27 4.37 0.967 0.186
455 - 605 $ 29 4.07 1.033 0.192
605 - 760 $ 15 3.93 0.799 0.206
Not stated 28 3.71 1.243 0.235
Less than 150 $ 10 4.30 0.949 0.300
760 $ and more 28 3.04 1.290 0.244
Table 9. Univariate tests with gender as an independent variable and the four
lack of time and knowledge barriers as dependent variables
Gender N Mean SD SE
Limited knowledge about Female 56 3.86 1.26 0.168
energy efficiency Male
measures and their 94 3.31 1.34 0.138
benefits