Household response to multiple environmental policy instruments

This project analyses households’ response to energy and environmental policy measures. We focus on how multiple policy measure use affect behaviour, and if there are direct conflicts of interests between various environmental and energy policy measures.

Project details

Project manager
Trude Lappegård
Project term
01.01.2011 - 31.12.2015
Project status
Research field

About the Project

Household consumption and production activities contribute to a significant share of climate gas emissions, and are hence an important target in climate policy. A range of policy instruments are implemented to move household energy consumption from electricity and fossil fuels to renewable energy, and increase energy efficiency. The effectiveness of these instruments depends on the households’ responses to these multiple instruments. Some of the instruments may conflict, as one instrument may trigger unwanted behavior concerning the aim of other instruments. To assure the efficiency of current and future policy efforts and minimize unwanted behavioral effects, analyses of how a combination of instruments changes household behavior are thus of great importance.

This project aims to increase our understanding of households’ response to different types of policy instruments when facing more than one instrument. We focus on specific cases of instrument use, and estimate the behavioral responses using micro data. The analytical approach is empirical micro econometric behavioral analysis using different regression analysis techniques. Information from this project may help to improve the design of the environmental policy and reduce unwanted behavioral responses to policy instruments.