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Climate Change, Buildings and Energy Prices

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Author Info

  • Alberto Gago

    (Rede (Universidade de Vigo) and Economics for Energy)

  • Michael Hanemann

    (Arizona State University and University of California at Berkeley)

  • Xavier Labandeira

    ()
    (Rede (Universidade de Vigo) and Economics for Energy)

  • Ana Ramos

    (Rede (Universidade de Vigo) and Economics for Energy)

Abstract

Buildings are crucial to control present and future energy demand and, therefore, greenhouse gas concentrations in the atmosphere. In this chapter we suggest that, due to a number of general and specific barriers to the implementation of energy efficiency in buildings, energy prices and conventional energy and environmental policy instruments may not achieve the desired outcomes. Instead, we suggest a novel package of complementary measures that can simultaneously tackle the problems of imperfect information, split incentives among agents, uncertainty about cost and limited access to capital. The proposed policy package is defined around energy certification of buildings, uses flexible building codes, smart metering and employs a new tax on energy inefficiency to foster continuous incentives towards energy efficiency improvements and to provide revenues for an energy efficiency fund that provides capital to firms and poor households.

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File URL: http://www.eforenergy.org/docpublicaciones/documentos-de-trabajo/WPFA04-2012.pdf
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Bibliographic Info

Paper provided by Economics for Energy in its series Working Papers with number fa04-2012.

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Length: 21 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:efe:wpaper:fa04-2012

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Web page: http://www.eforenergy.org

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References

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  1. Mundaca, Luis & Neij, Lena, 2009. "A multi-criteria evaluation framework for tradable white certificate schemes," Energy Policy, Elsevier, vol. 37(11), pages 4557-4573, November.
  2. Gillingham, Kenneth & Newell, Richard G. & Palmer, Karen, 2009. "Energy Efficiency Economics and Policy," Discussion Papers dp-09-13, Resources For the Future.
  3. Xavier Labandeira & Pedro Linares, 2010. "Energy efficiency: Economics and Policy," Working Papers 05-2010, Economics for Energy.
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  6. Palmer, Karen & Walls, Margaret & Gordon, Hal & Gerarden, Todd, 2011. "Assessing the Energy-Efficiency Information Gap: Results from a Survey of Home Energy Auditors," Discussion Papers dp-11-42, Resources For the Future.
  7. Xavier Labandeira & Pedro Linares, 2010. "Second-best instruments for energy and climate policy," Working Papers 06-2010, Economics for Energy.
  8. Warwick J. McKibbin, Adele C. Morris, and Peter J. Wilcoxen, 2011. "Subsidizing Household Capital: How Does Energy Efficiency Policy Compare to a Carbon Tax?," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
  9. Eichholtz, Piet & Kok, Nils & Quigley, John M., 2009. "Doing Well by Doing Good? Green Office Buildings," Berkeley Program on Housing and Urban Policy, Working Paper Series qt507394s4, Berkeley Program on Housing and Urban Policy.
  10. Gilmer, Robert W., 1989. "Energy labels and economic search : An example from the residential real estate market," Energy Economics, Elsevier, vol. 11(3), pages 213-218, July.
  11. Kwak, So-Yoon & Yoo, Seung-Hoon & Kwak, Seung-Jun, 2010. "Valuing energy-saving measures in residential buildings: A choice experiment study," Energy Policy, Elsevier, vol. 38(1), pages 673-677, January.
  12. Bertoldi, Paolo & Rezessy, Silvia & Lees, Eoin & Baudry, Paul & Jeandel, Alexandre & Labanca, Nicola, 2010. "Energy supplier obligations and white certificate schemes: Comparative analysis of experiences in the European Union," Energy Policy, Elsevier, vol. 38(3), pages 1455-1469, March.
  13. Nair, Gireesh & Gustavsson, Leif & Mahapatra, Krushna, 2010. "Owners perception on the adoption of building envelope energy efficiency measures in Swedish detached houses," Applied Energy, Elsevier, vol. 87(7), pages 2411-2419, July.
  14. Franz Fuerst & Patrick McAllister, 2011. "Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(1), pages 45-69, 03.
  15. Nils Kok & Marquise McGraw & John M. Quigley, 2011. "The Diffusion of Energy Efficiency in Building," American Economic Review, American Economic Association, vol. 101(3), pages 77-82, May.
  16. Brounen, Dirk & Kok, Nils, 2011. "On the economics of energy labels in the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 166-179, September.
  17. Iwaro, Joseph & Mwasha, Abraham, 2010. "A review of building energy regulation and policy for energy conservation in developing countries," Energy Policy, Elsevier, vol. 38(12), pages 7744-7755, December.
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Cited by:
  1. Xavier Labandeira & Ana Ramos, 2012. "Household Environmental Attitudes and Energy Efficiency in Buildings: Evidence from Spanish Data," Working Papers fa08-2012, Economics for Energy.

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