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Market based instruments to reduce air emissions from household heating appliances. Analysis of scrappage policy scenarios

Iñaki Arto (), Kurt Kratena (), Antonio Amores, Umed Temursho (Temurshoev) and Gerhard Streicher ()
Additional contact information
Iñaki Arto: European Commission – JRC, https://joint-research-centre.ec.europa.eu/index_en
Kurt Kratena: WIFO

No JRC85940, JRC Research Reports from Joint Research Centre (Seville site)

Abstract: This document explores the potential for the use of a market-based instrument to contribute to reducing the emissions of particulate matter of less than 10 micrometres from household heating appliances in the framework of the review of the Thematic Strategy on Air Pollution. The study is focused on the assessment of the economic and environmental impacts of possible scrappage policies for promoting the accelerated replacement of existing heating appliances with cleaner ones. Under these policy programmes, households replacing an old appliance with a cleaner one would receive a subsidy from the government. This subsidy would compensate households for the residual value of the scrapped appliance and the opportunity costs of the early investment in a new one. Two different scenarios are analysed: The scrappage and replacement of all the different types of conventional appliances that do not incorporate any emission control technology ('non-controlled'), and the scrappage and replacement of only 'non-controlled' firewood- and hard-coal-fired manual single house boilers. It is assumed that the scrappage programme is in force between 2018 and 2020. For each scenario, the study focuses on the effects of different levels of replacement of the 'non-controlled' appliances and the size of subsidies relative to the investment costs.

Keywords: Market-based Instruments; Emissions reduction; Particles Emissions; Scrappage; Economic Impact (search for similar items in EconPapers)
JEL-codes: C54 D1 D58 D62 H23 H41 I18 Q52 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-09
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur, nep-reg and nep-res
References: View references in EconPapers View complete reference list from CitEc
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