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Do homes that are more energy efficient consume less energy?: A  structural equation model for England's residential sector / Scott  Kelly. Electricity Policy Research Group, 2011, 34 p. (EPRG Working Paper 1117)http://www.eprg.group.cam.ac.uk/wp-content/uploads/2011/05/EPRG-WP-1117.pdfEnergy  consumption from the residential sector is a complex socio-technical  problem that can be explained using a combination of physical,  demographic and behavioural characteristics of a dwelling and its  occupants. A structural equation model (SEM) is introduced to calculate  the magnitude and significance of explanatory variables on residential  energy consumption. The benefit of this approach is that it explains the  complex relationships that exist between manifest variables and their  overall effect through direct, indirect and total effects on energy  consumption. Using the English House Condition Survey (EHCS) consisting  of 2531 unique cases, the main drivers behind residential energy  consumption are found to be the number of household occupants, floor  area, household income, dwelling efficiency (SAP), household heating  patterns and living room temperature. In the multivariate case, SAP  explains very little of the variance of residential energy consumption.  However, this procedure fails to account for simultaneity bias between  energy consumption and SAP. Using SEM its shown that dwelling energy  efficiency (SAP), has reciprocal causality with dwelling energy  consumption and the magnitude of these two effects are calculable. When  nonrecursivity between SAP and energy consumption is allowed for, SAP is  shown to have a moderately negative effect on energy consumption but  conversely, homes with a propensity to consume more energy have a higher  SAP rating and are therefore more efficient. (© EPRG)