 Does the stick make the carrot more attractive? State mandates and uptake of renewable heating technologiesRobert Germeshausen, Kathrine von Graevenitz and Martin Achtnicht Regional Science and Urban Economics, 2022, vol. 92, issue C Abstract: Command and control regulation is a popular tool for mitigating greenhouse gas emissions from the building stock. We exploit the introduction of a state-specific mandate in Germany on renewable heating when replacing the heating system in existing homes. We study the effect of the mandate on the uptake of subsidies for renewable heating technologies using unique data from a pre-existing federal government subsidy scheme. Using a geographic discontinuity design, we find that the mandate has positive effects on take-up of these subsidies, with 2 additional subsidized installations per 1000 eligible buildings in the existing building stock on average. Effects are larger in municipalities where adoption rates as measured by the subsidy scheme were below median prior to the introduction of the mandate. However, we also find suggestive evidence that retrofitting activities in the state declined in response to the introduction of the mandate. Keywords: Technology diffusion; Building regulations; Subsidies; Renewable energy sources; Geographic discontinuity design (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:92:y:2022:i:c:s0166046221001137 DOI: 10.1016/j.regsciurbeco.2021.103753 Access Statistics for this article Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou More articles in Regional Science and Urban Economics from Elsevier |
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