Evaluating intervention options to achieve environmental benefits in the residential sector

Government intervention schemes in the form of policy instruments and financial incentives or rebates can have a major influence on the adoption of technologies by residential consumers to reduce their natural resource consumption and greenhouse gas emissions. However, the pattern and rate of consumer uptake of voluntary schemes are not always well-understood or easily taken into account in future scenarios analyses. This paper presents an innovative extension of the Bass diffusion model that has been integrated with multi-criteria analysis to enable explicit consideration and balancing of the impacts of technology cost, financial benefits, demographic suitability and household income on the likelihood of adoption. This ‘Intervention Options’ model is formulated into a constrained integer programming problem to allow optimisation of the size and timing of government rebates to maximise adoption rate and, ultimately, environmental benefits. The model’s capability is demonstrated using an Australian case study of 25,000 households, and historical information on the uptake of solar hot water and solar photovoltaic panels in Brisbane, Queensland. Case study results reveal new insights and important context-relevant trends that could assist policy makers to substantially improve the effectiveness of intervention schemes to achieve environmental goals within desired budgets.