“Building Retrofit Hurdle Rates and Risk Aversion in Energy Efficiency Investments,” by Director of Civic Analytics, Constantine Kontokosta, and Research Affiliate Yuan Lai in collaboration with Lawrence Berkeley National Laboratory and co-authors from the NYU Center for Urban Science and Progress, University of Arizona, University of Cambridge, and University of North Carolina at Chapel Hill, has been published in Applied Energy. The article examines the return on investment to building-energy retrofits for NYC buildings to determine economically viable pathways to large-scale carbon-emissions reductions. The authors conclude:
In the aggregate, we develop a better understanding of the financial implications of large-scale retrofit adoption. This information can be used in practice by policymakers for devising new incentives and regulatory mechanisms, while building owners can use it to support evidence-based investment decisions. Ultimately, our exploratory study is intended to contribute to the knowledge base that can address financial and informational barriers to energy efficiency in buildings.