Our Market Transformation research

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Beacon’s key goal is to bring the 90% of New Zealand houses to a high standard of sustainability by 2012.

To reach Beacon’s goal, we need to transform the market for sustainable houses, building products and techniques through:

  • creating consumer demand
  • ensuring products and services are available
  • ensuring industry has capability and capacity

A market transformation programme with the goal of improving the sustainability performance of housing is likely to require a mix of measures to create both “supply push” and “demand pull”. Supply-side approaches include requirements for suppliers to improve product design considering all stages of the product’s life cycle, performance and quality; minimum standards, labels and building codes. Demand-side approaches include education of consumers and professionals; incentives through finance or voluntary schemes, home performance audits and reporting.
 
Effective transformation happens through pressures (or interventions) that pull and push the market simultaneously: consumers request energy efficient products and suppliers are motivated to provide them (market-pull); or, suppliers influence consumers’ behaviour by providing energy efficient products (market push). Here is an example of the Market Transformation Cycle for energy efficiency:

Market transformation cycle

Concern leads to action

Growing awareness about the effects of climate change creates a concern which results in demand for action. Decisions are made about what actions should be taken to reduce energy consumption and emissions.  Information, tools and measurements, assist in decision making. The resulting action is the purchase of specify energy efficient technologies and solutions.

Interventions meet demand and encourage supply

Interventions encourage or legislate greater energy efficiency. They may include: a Home Rating Scheme, energy-efficient product labelling and the creation of industry standards and codes of practice.

Demand and intervention encourage supply

Increased awareness and interventions encourage the supply of features to improve performance and enhance energy efficiency such as insulation, solar hot water, energy efficient lighting.

Supplied features have benefits

Improved performance (such as energy efficiency and reduced emissions) results in benefits for the homeowner (such as comfort, enjoyment, warmth, health), as well as energy saving benefits for the country.

Awareness of benefits increases demand

Increased supply and uptake of energy efficient products and services raises awareness and therefore demand.

Market transformation is embedded within all of Beacon’s research projects. It is framing Beacon’s pathway for change. By applying all the knowledge we have gained through our research, we are hoping to transform the market for sustainable housing.

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