Endogenous energy efficiency and residential energy consumption in the presence of health and education choices

Xavier Pautrel ()
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Xavier Pautrel: GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: We build an overlapping-generation model with heterogenous agents, in which education, health and energy efficiency choices are endogenous. It incorporates the empirical evidence that education is positively influenced by health, and that low energy efficiency reduces health status.Firstly, this model replicates the well-documented positive relationship between energy efficiency and income level. Secondly, it shows that a greater level of energy efficiency chosen by individuals reduces wage inequality between skilled and unskilled workers. Thirdly, it replicates the positive link between the aggregate energy efficiency index (defined as the weighted sum of the individual energy efficiencies chosen) and aggregate energy consumption, as highlighted in the literature, offering a possible explanation of the rebound effect based on health and educational dimensions.

Keywords: Energy efficiency Rebound effect Residential energy consumption Health Education Overlapping generations model. JEL classification D58 Q43; Energy efficiency; Rebound effect; Residential energy consumption; Health; Education; Overlapping generations model. JEL classification D58; Q43 (search for similar items in EconPapers)
Date: 2025-08-26
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