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Greener homes: an ex-post estimate of the cost of carbon dioxide emission reduction using administrative micro-data from the Republic of Ireland

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  • Eimear Leahy
  • Richard Tol

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Abstract

We assess the subsidy for the installation of biomass boilers and wood gasification boilers under the Greener Homes Scheme in Ireland. We find that the (implicit) subsidy per tonne of carbon dioxide avoided varies hugely across households. The current policy costs 17% too much for the emissions avoided, or avoids 17% too few emissions for the money spent. The subsidy reduces welfare (including environmental benefits) by 42%.

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File URL: http://hdl.handle.net/10.1007/s10018-012-0034-6
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Bibliographic Info

Article provided by Society for Environmental Economics and Policy Studies - SEEPS in its journal Environmental Economics and Policy Studies.

Volume (Year): 14 (2012)
Issue (Month): 3 (July)
Pages: 219-239

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Handle: RePEc:spr:envpol:v:14:y:2012:i:3:p:219-239

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Related research

Keywords: Climate policy; Ireland; Ex-post evaluation; Q48; Q54;

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References

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  1. FitzGerald, John & Bergin, Adele & Conefrey, Thomas & Diffney, Sean & Duffy, David & Kearney, Ide & Lyons, Sean & Malaguzzi Valeri, Laura & Mayor, Karen & Richard S. J. Tol, 2008. "Medium-Term Review 2008-2015, No. 11," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR11.
  2. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-22, June.
  3. Mills, Bradford F. & Schleich, Joachim, 2009. "Profits or preferences? Assessing the adoption of residential solar thermal technologies," Energy Policy, Elsevier, vol. 37(10), pages 4145-4154, October.
  4. Scott, S., 1997. "Household energy efficiency in Ireland: A replication study of ownership of energy saving items," Energy Economics, Elsevier, vol. 19(2), pages 187-208, May.
  5. Mustafa H. Babiker & Gilbert E. Metcalf & John Reilly, 2002. "Tax Distortions and Global Climate Policy," Discussion Papers Series, Department of Economics, Tufts University 0211, Department of Economics, Tufts University.
  6. Joe O'Doherty & Seán Lyons & Richard S. J. Tol, 2007. "Energy-Using Appliances and Energy-Saving Features: Determinants of Ownership in Ireland," Papers WP219, Economic and Social Research Institute (ESRI).
  7. Jenkins, D.P., 2010. "The value of retrofitting carbon-saving measures into fuel poor social housing," Energy Policy, Elsevier, vol. 38(2), pages 832-839, February.
  8. Gilbert E. Metcalf, 2009. "Tax Policies for Low-Carbon Technologies," NBER Working Papers 15054, National Bureau of Economic Research, Inc.
  9. Clinch, J. Peter & Healy, John D., 2001. "Cost-benefit analysis of domestic energy efficiency," Energy Policy, Elsevier, vol. 29(2), pages 113-124, January.
  10. Richard S. J. Tol, 2009. "The Economic Effects of Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 29-51, Spring.
  11. Leahy, Eimear & Lyons, Seán, 2009. "Energy Use and Appliance Ownership in Ireland," Papers WP277, Economic and Social Research Institute (ESRI).
  12. Amstalden, Roger W. & Kost, Michael & Nathani, Carsten & Imboden, Dieter M., 2007. "Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectations," Energy Policy, Elsevier, vol. 35(3), pages 1819-1829, March.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. CBA of the Home Energy Saving scheme
    by Richard Tol in The Irish Economy on 2011-09-24 20:34:43
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Cited by:
  1. Richard S.J. Tol, 2012. "Targets for Global Climate Policy: An Overview," Working Paper Series 3712, Department of Economics, University of Sussex.

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