The Residential Buildings Regulatory Impact Methodology has been prepared by HoustonKemp Economists for the Department of the Environment and Energy. The methodology evaluates the costs and benefits of potential increases in the stringency of the energy efficiency provisions in the NCC.
NCC energy efficiency provisions were last considered in 2009. The methodology used in 2009 has been re-examined and necessary revisions have been recommended to reflect current best practise. The Methodology recommends a high-level cost benefit approach to any regulatory impact statements and outlines five key steps for an economic evaluation of proposed changes.
The five key steps are:
- Identify compliance pathways
- Select representative dwellings
- Estimate impact of proposed changes on energy use
- Estimate the dwelling health and wellbeing implications
- Aggregate based on projects of expected uptake
Key recommendations that differ from the 2009 methodology include:
- A 20-30 year costs and benefits evaluation time frame
- Discount rates of 5-7% and conduct sensitivity at 3-10%
- An estimation of the costs and benefits for a number of different dwelling types in different climate zones
The Methodology also recommends changes to key modelling inputs to capture benefits and evaluate costs. Recommendations estimating benefits that differ from the 2009 methodology include:
- Estimates of reduced network and generation costs
- Estimates of reduced greenhouse gas emissions
- Associated health, safety and amenity benefits for dwelling occupants
Recommendations estimating costs that differ from the 2009 methodology include:
- Enforcement costs
- Building compliance costs
The Methodology notes gaps in the current evidence base and recommends a continuation of research be conducted to expand the evidence base from which the methodology can draw upon when evaluating the costs and benefits of changes to the NCC.
More information here.