{"id":1620,"date":"2026-07-10T10:19:38","date_gmt":"2026-07-10T10:19:38","guid":{"rendered":"http:\/\/christoph-hambel.de\/?p=1620"},"modified":"2026-07-10T10:19:38","modified_gmt":"2026-07-10T10:19:38","slug":"new-working-paper-4","status":"publish","type":"post","link":"http:\/\/christoph-hambel.de\/?p=1620","title":{"rendered":"New Working Paper"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">It has been a while since I last worked on household finance, so I am particularly excited to share this <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=7092898\">new working paper<\/a>, co-authored with my wonderful colleagues <a href=\"http:\/\/carina-fleischer.de\/\">Carina Fleischer<\/a> and <a href=\"https:\/\/sites.google.com\/view\/marlenekoch\/start\">Marlene Koch<\/a>. The paper asks a timely question: How should households protect themselves against energy crises? Is it better to reduce energy consumption, or should they invest in energy-efficiency measures such as insulation, solar panels, or heat pumps?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The answer is more nuanced than a simple cost-benefit analysis suggests. Although upgrading a home&#8217;s energy label typically has a positive net present value, many households still optimally delay or forgo renovation. To understand why, we develop and solve a rich continuous-time life-cycle model that incorporates realistic renovation costs, liquidity constraints, house price risk, stock market risk, mortality risk, and energy price risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our results show that liquidity constraints and mortality risk, rather than the profitability of renovation itself, are the primary barriers to energy-efficiency investments. More broadly, the paper demonstrates how energy price risk, housing risk, and demographic risk jointly shape household consumption, portfolio allocation, and energy-efficiency investments, with important implications for the design of residential energy-efficiency policies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It has been a while since I last worked on household finance, so I am particularly excited to share this new working paper, co-authored with my wonderful colleagues Carina Fleischer and Marlene Koch. The paper asks a timely question: How should households protect themselves against energy crises? Is it better to reduce energy consumption, or should they invest in energy-efficiency [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":748,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research","col-lg-4 col-md-6"],"_links":{"self":[{"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/posts\/1620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1620"}],"version-history":[{"count":5,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/posts\/1620\/revisions"}],"predecessor-version":[{"id":1648,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/posts\/1620\/revisions\/1648"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=\/wp\/v2\/media\/748"}],"wp:attachment":[{"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1620"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/christoph-hambel.de\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}