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CIRED Seminar : Helena Meier (KPMG, Université de Cologne)

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A Framework for Estimating Microeconomic Demand Effects from Energy Efficiency in Households


Governments worldwide spend increasing amounts of money on policy schemes to reduce energy consumption and related carbon emissions by incentivizing investments in energy efficiency. In this paper, we present a framework to investigate the actual demand-reducing effect of energy efficiency measures. Our framework allows to estimate direct as well as indirect energy demand rebounds from economic and behavioural effects. In addition, we apply the framework to German household data and therein compare actual demand responses to technological potentials. We find economic and behavioural responses that counteract expected savings from energy efficiency. Results show strong rebound effects for almost all energy efficiency types but also suggest heterogeneity of the effectiveness with respect to these types. Understanding these can contribute to target-oriented policy designs and an increased effectiveness and efficiency of policies.