The role of energy performance certificates and energy-related financial literacy in choosing an energy-efficient home: Evidence from Slovenian homeowners

Abstract

Energy performance certificates serve to inform the public about the energy performance of buildings in a standardised way. Although there have been influential studies about energy performance certificates, their effectiveness in improving household energy efficiency by reducing information barriers has been underexplored. This paper addresses this gap with evidence from Slovenia, an EU member state using empirical data from an online survey. We employed discrete choice models to analyse a representative sample of 2,484 Slovenian homeowners. We find that financial literacy and correct life-cycle cost calculation positively and significantly influence the likelihood of selecting an energy-efficient home. The same results apply to the integrated concept of energy-related financial literacy. In addition, providing information in monetary terms, rather than in kWh per square meter, does not significantly impact the respondents’ decision, while trust in the energy performance certificates is a decisive factor in the choice of an energy-efficient home and thus plays an important role in their effectiveness. The obtained results advocate for the simplification of energy performance certificates and the enhancement of information campaigns to foster trust and improve energy literacy, which is found to be very low.