Is it sensible to invest in home energy renovation?

Corinne Chaton and Samy Zitouni ()
Additional contact information
Corinne Chaton: FiME Lab - Laboratoire de Finance des Marchés d'Energie - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CREST - EDF R&D - EDF R&D - EDF - EDF
Samy Zitouni: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Working Papers from HAL

Abstract: To accelerate the energy renovation of buildings (housing and tertiary) necessary to achieve carbon neutrality by 2050, the French government has launched an energy renovation plan for buildings. This plan allocates funds across different subsidy and aid mechanisms for housing renovation. What is the impact of these investment subsidies for energy renovation on such investment and on the consumption and savings of a home-owning household that is not in fuel poverty? To answer this question, we develop a two-period, two-goods model that integrates "essential baskets", i.e., baskets of goods (with a "minimum energy" level and an "essential composite good"). We confirm that the investment subsidy for energy renovation is effective if it is targeted. However, this targeting should not be based solely on income. Indeed, we highlight non-monetary side effects as one of the key parameters of policy effectiveness. To illustrate our remarks, we estimate and calibrate the parameters of the model with data from French households that only use electricity as an energy source for their homes.

Keywords: Energy transition; Energy efficiency; Household behaviour (search for similar items in EconPapers)
Date: 2023-09
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04758670

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().