This research investigates the cost-effectiveness of energy performance measures in French residential buildings. We develop an empirical approach based on a multivariate statistical approach and ...Cost-Benefit analysis. The strength of this research relies on the designing of a large cross-sectional database collected in 2013 including rich technical information of about 1,400 dwellings representative of the French residential sector as well as individual recommendations relative to the energy renovations to be implemented, their investment costs, and energy savings potential. We provide valuable information on the cost-effectiveness of energy renovation measures for the entire housing stock. Results show that low-temperature and condensing boilers, as well as floor insulation, are the most cost-effective energy efficiency measures, which could be inconsistent with actual subsidy policies. We demonstrate that the cost-effectiveness of energy renovation measures is widely dependent on dwelling initial characteristics and the value of the inputs used in the economic indicators such as energy-savings amount, energy price, and the discount rate. Moreover, we provide a classification of French dwellings, which may help policymakers, better identify their target. Finally, we show that the renovation of the entire French residential dwelling stock can lead to a great amount of energy–and CO2–reductions but requires significant financial capacity.
•We examine the cost-effectiveness of energy efficiency renovation measures.•We develop a cost-benefit and simulation approach based on a rich data set.•We provide key insights on the profitability of the energy renovation measures.•Low temperature and condensing boilers appear to be the most cost-effective measures.•The renovation of the entire housing stock may lead to a significant CO2 reduction.
Assessing the contribution of energy efficiency to climate change mitigation is crucial as global warming continues to persist. This study assesses the impact of energy efficiency on carbon intensity ...in Saudi Arabia and evaluates its potential contributions to the country's net-zero emissions target. We analyze time-series data for Saudi Arabia from 1971 to 2020 and estimate a quantile regression model. The results show that energy efficiency is critical for mitigating carbon dioxide emissions, indicating the importance of activating this lever to accelerate the decarbonization process. The model is robust to changes in the proxy for energy efficiency, confirming energy efficiency's ability to mitigate environmental degradation in Saudi Arabia. Moreover, energy efficiency has a greater impact on the twenty-fifth to seventy-fifth quantiles of carbon intensity than on the tenth and ninetieth quantiles. These heterogeneous effects across carbon intensity quantiles should be considered when the Saudi government discusses and sets its decarbonization objectives. We further extend the analysis by forecasting carbon intensity through 2060 under a scenario in which energy efficiency improves. The results show that energy efficiency improvements may account for up to one-fifth of Saudi Arabia's decarbonization by 2060. This finding underscores energy efficiency's importance for achieving climate stability and building a better future.
•We assess the impact of energy efficiency on GHG reduction.•We simulate the contribution of energy efficiency to reaching climate objectives.•We conduct time series quantile and out-of-sample forecast approaches.•Energy efficiency could contribute up to one-fifth of the “zero emission” target by 2060.•We reveal critical policy implications, considering the ongoing recasting of climate policy.
The main focus of this paper is to understand the behavioral obstacles to investing in energy efficiency in the French residential sector. We pay particular attention to the role of environmental ...concerns and perception of energy context. To achieve this, we develop a nested logit model to investigate the determinants of energy renovation behavior. The empirical analysis is based on an original survey conducted in 2018, which represents French homeowners. The findings of the study reveal several important insights. Firstly, environmentally conscious individuals are significantly more likely to undertake energy renovation measures. Secondly, in line with previous research, the analysis confirms that risk aversion decreases the likelihood of investing in energy efficiency measures. Thirdly, sociodemographic factors and dwelling characteristics also play a role in shaping energy renovation behavior. Overall, these results have implications for policymakers, emphasizing the importance of reducing the risk faced by households in order to promote energy efficiency investments and facilitate the transition to a low-carbon economy.
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•We examine the behavioral barriers impeding investment in energy efficiency.•We develop a nested logit model based on a new representative survey.•The results show that eco-friendly occupants are more likely to invest in renovation.•Results show that risk aversion reduces the likelihood of investing in energy efficiency.•Results call for reducing energy efficiency investment risks to foster building decarbonization.
The energy saved by improving the building efficiency of European households may not be as much as expected due to a rebound effect. Based on Eurostat and World Bank annual panel data covering the ...period 1996–2020, this article develops dynamic panel approaches, a generalized method of moments, and first-difference specifications, to investigate the direct rebound effect of residential electricity consumption in selected European countries. Instrumental variable techniques are used to tackle the reverse causality of the electricity price in a demand model. Estimates of the direct rebound effect in residential electricity use are 18% in the short-run and 43% in the long-run. Our findings reject the hypothesis of a backfire effect in residential electricity demand. They have important implications for policy makers, suggesting the need for smart policies that consider energy consumption behaviors and decision-making processes among various households.
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•We estimate the direct rebound effect for residential electricity use in Europe.•We explore short and long-run direct rebound effects using FD and GMM approaches.•We use 1996–2020 annual panel data for 17 European countries.•The short-run direct rebound effect is estimated at 18%, the long-run effect at 43%.•We suggest rebound mitigation strategies to design more effective energy policies.
This paper develops a pseudo-panel approach to examine household electricity demand behavior through the household life cycle and its response to income variations to help strengthen the energy ...policy-making process. Our empirical methodology is based on three rich independent microdata surveys (the National Housing Surveys), which are representative of the French housing sector. The resulted sample covers the 2006–2016 period. Using within estimations, this paper finds striking evidence that the income elasticity of French residential electricity demand is 0.22, averaged over our four cohorts of generations. In light of other works, our estimate stands in the lower range. The empirical results also show that residential electricity consumption follows an inverted U-shaped distribution as a function of the age of the household’s head. Most notably, it appears that households at the mid-point of their life cycle are relatively the largest consumers of electricity. This outcome has important implications for policy-making. Any public policy aimed at reducing household energy consumption should consider this differentiation in consumption according to the position of households over the life cycle, and therefore target as priority households at the highest level of consumption.
•We examine the critical determinants of heating system choices in France.•We develop a discreet choice model based on a nationally representative survey.•We provide crucial insights on the heating ...energy choices.•The outcomes have important implications for energy policymakers.•Results help design public incentives to increase heating system energy efficiency.
In the context of environmental protection through energy management, heating energy consumption raises a major question. Thus, identifying the primary drivers of such consumption represents an important step toward addressing the challenges of growing energy demand. To facilitate the adoption of more efficient heating household systems, this study develops a Multinomial Logit approach to examine factors influencing heating energy consumption. Using the 2016 French Housing Survey, provided by the French National Institute of Statistics and Economic Studies, this article finds striking evidence that dwelling characteristics such as dwelling type, year of construction, and location present the most significant drivers of heating energy choice. However, sociodemographic characteristics also hold some importance in the matter. The discovered consumption outcomes have important implications for policymakers, shedding light on consumers' profile and determinants of heating energy sources, the latter marking the core of the European Union’s competitive low-carbon economy by 2050 roadmap.
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