Discussion Papers no. 817

A CGE-analysis with bottom-up information on energy efficiency technologies

Residential energy efficiency and European carbon policies

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While the introduction and reformation of climate policy instruments take place rapidly in Europe, the knowledge on how the instruments interact lags behind. In this paper we analyse different interpretations of the 2030 climate policy goals for residential energy efficiency and how they interact with targets for restricting CO2 emissions.

While the introduction and reformation of climate policy instruments take place rapidly in Europe, the knowledge on how the instruments interact lags behind. In this paper we analyse different interpretations of the 2030 climate policy goals for residential energy efficiency and how they interact with targets for restricting CO2 emissions. We focus on Norway, whose climate and energy policies are integrated with those of the EU. As we account for investment costs of improving energy efficiency we find substantial welfare costs of energy efficiency policies, particularly when interacting with carbon pricing. Rebound effects within households are small, but economy-wide indirect rebound is significant because energy-intensive, trade-exposed (EITE) industries expand. As residential energy use consists mainly of carbon-free electricity, this expansion of EITE-industries leads to increased total CO2 emissions.

About the publication

Title

Residential energy efficiency and European carbon policies. A CGE-analysis with bottom-up information on energy efficiency technologies

Authors

Taran Fæhn, Orvika Rosnes, Brita Bye

Series and number

Discussion Papers no. 817

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

30

Language

English

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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