Energy efficiency policies in an agent-based macroeconomic model

Marco Amendola, Francesco Lamperti, Andrea Roventini and Alessandro Sapio

Structural Change and Economic Dynamics, 2024, vol. 68, issue C, 116-132

Abstract: Energy efficiency can help facing the climate crises. Yet the energy intensity has decreased more slowly than required to achieve climate goals. Based on this premise, we build an agent-based model to study the effects of different energy efficiency policies. Policies analysed range from indirect policies – taxes, incentives, and subsidies – to direct technological policies, where a public research laboratory invests in R&D to establish a new technological energy efficiency paradigm. Results reveal that, although most of the policies effectively reduce energy intensity, the research lab is the most efficient in promoting energy efficiency without negative impacts on macroeconomic and public finance conditions. However, the success of this policy requires a long-term commitment, highlighting the importance of complementing this strategy with more “ready to use” measures. The findings also indicate that most policies do not induce significant macroeconomic rebound effects. Concerns about macroeconomic rebound effects may likely be overstated.

Keywords: Energy efficiency policies; Energy intensity; Sustainability; Rebound effect; Agent-based modelling (search for similar items in EconPapers)
JEL-codes: C63 O33 O38 Q41 Q48 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Energy efficiency policies in an agent-based macroeconomic model (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:68:y:2024:i:c:p:116-132

DOI: 10.1016/j.strueco.2023.10.003

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