Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone?

Dorothée Charlier (), Anna Risch and Claire Salmon ()
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Claire Salmon: IAE Savoie Mont-Blanc, IREGE

No 2016.01, Policy Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: In this article, we assess current public policies, designed to reduce greenhouse gas (GHG) emissions, lower energy consumption, and fight the “energy burden” in the long term, so that it might offer relevant policy recommendations. We develop an existing partial equilibrium model to take into consideration key determinants of excessive energy burden. This analysis reveals that public policies are not sufficient to reach the ambitious objectives for reducing energy consumption and GHG emissions in France. Moreover, the decreases that might occur disguise significant social disparities across households. The joint implementation of multiple instruments leads to interactions that diminish overall policy outcomes. Overall, current public policies produce estimated free-riding rates of 75%. Energy efficiency measures are thus insufficient; governments need to focus more on monetary poverty as a cause of low renovation rates and consider subsidies of renovation costs as a potential solution.

Keywords: energy burden; public policies; bottom-up simulation; energy consumption; GHG emissions (search for similar items in EconPapers)
JEL-codes: C21 C61 Q41 Q48 Q58 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2016-02
New Economics Papers: this item is included in nep-ene and nep-env
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http://faere.fr/pub/PolicyPapers/Charlier_Risch_Salmon_FAERE_PP2016.01.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:fae:ppaper:2016.01

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