IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v34y2012i2p426-445.html
   My bibliography  Save this article

Exploring the potential for energy conservation in French households through hybrid modeling

Author

Listed:
  • Giraudet, Louis-Gaëtan
  • Guivarch, Céline
  • Quirion, Philippe

Abstract

Although the building sector is recognized as having major potential for energy conservation and carbon dioxide emission mitigation, conventional bottom–up and top–down models are limited in their ability to capture the complex economic and technological dynamics of the sector. This paper introduces a hybrid framework developed to assess future household energy demand in France. Res-IRF, a bottom–up module of energy consumption for space heating, has several distinctive features: (i) a clear separation between energy efficiency, i.e. investment in energy efficient technologies, and sufficiency, i.e. changes in the utilization of energy consuming durables which allows the rebound effect to be assessed; (ii) the inclusion of barriers to energy efficiency in the form of intangible costs, consumer heterogeneity parameters and the learning-by-doing process; (iii) an endogenous determination of retrofitting which represents trade-offs between retrofit quantity and quality. Subsequently, Res-IRF is linked to the IMACLIM-R computable general equilibrium model. This exercise shows that, compared to a 37% reduction in final energy demand achievable in business as usual in existing dwellings in 2050, an additional reduction of 21% could be achieved if relevant barriers to efficiency and sufficiency were overcome.

Suggested Citation

  • Giraudet, Louis-Gaëtan & Guivarch, Céline & Quirion, Philippe, 2012. "Exploring the potential for energy conservation in French households through hybrid modeling," Energy Economics, Elsevier, vol. 34(2), pages 426-445.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:426-445
    DOI: 10.1016/j.eneco.2011.07.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014098831100140X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
    2. Sanstad, Alan H. & Howarth, Richard B., 1994. "`Normal' markets, market imperfections and energy efficiency," Energy Policy, Elsevier, vol. 22(10), pages 811-818, October.
    3. Levinson, Arik & Niemann, Scott, 2004. "Energy use by apartment tenants when landlords pay for utilities," Resource and Energy Economics, Elsevier, vol. 26(1), pages 51-75, March.
    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. Leth-Petersen, Soren & Togeby, Mikael, 2001. "Demand for space heating in apartment blocks: measuring effects of policy measures aiming at reducing energy consumption," Energy Economics, Elsevier, vol. 23(4), pages 387-403, July.
    6. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    7. Urge-Vorsatz, Diana & Novikova, Aleksandra, 2008. "Potentials and costs of carbon dioxide mitigation in the world's buildings," Energy Policy, Elsevier, vol. 36(2), pages 642-661, February.
    8. Boonekamp, Piet G.M., 2007. "Price elasticities, policy measures and actual developments in household energy consumption - A bottom up analysis for the Netherlands," Energy Economics, Elsevier, vol. 29(2), pages 133-157, March.
    9. Darby, Sarah, 2006. "Social learning and public policy: Lessons from an energy-conscious village," Energy Policy, Elsevier, vol. 34(17), pages 2929-2940, November.
    10. Swan, Lukas G. & Ugursal, V. Ismet, 2009. "Modeling of end-use energy consumption in the residential sector: A review of modeling techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 1819-1835, October.
    11. Olivier Sassi & Renaud Crassous & Jean-Charles Hourcade & Vincent Gitz & Henri Waisman & Celine Guivarch, 2010. "IMACLIM-R: a modelling framework to simulate sustainable development pathways," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 5-24.
    12. Louis-Gaëtan Giraudet & Philippe Quirion, 2008. "Efficiency and distributional impacts of tradable white certificates compared to taxes, subsidies and regulations," Revue d'économie politique, Dalloz, vol. 118(6), pages 885-914.
    13. Nesbakken, Runa, 2001. " Energy Consumption for Space Heating: A Discrete-Continuous Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 165-184, March.
    14. Gilbert E. Metcalf & Kevin A. Hassett, 1999. "Measuring The Energy Savings From Home Improvement Investments: Evidence From Monthly Billing Data," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 516-528, August.
    15. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
    16. Sartori, Igor & Wachenfeldt, Bjrn Jensen & Hestnes, Anne Grete, 2009. "Energy demand in the Norwegian building stock: Scenarios on potential reduction," Energy Policy, Elsevier, vol. 37(5), pages 1614-1627, May.
    17. Mahapatra, Krushna & Gustavsson, Leif, 2008. "An adopter-centric approach to analyze the diffusion patterns of innovative residential heating systems in Sweden," Energy Policy, Elsevier, vol. 36(2), pages 577-590, February.
    18. Sue Wing, Ian, 2006. "Representing induced technological change in models for climate policy analysis," Energy Economics, Elsevier, vol. 28(5-6), pages 539-562, November.
    19. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    20. Ferioli, F. & Schoots, K. & van der Zwaan, B.C.C., 2009. "Use and limitations of learning curves for energy technology policy: A component-learning hypothesis," Energy Policy, Elsevier, vol. 37(7), pages 2525-2535, July.
    21. Kempton, Willett & Montgomery, Laura, 1982. "Folk quantification of energy," Energy, Elsevier, vol. 7(10), pages 817-827.
    22. Horne, Matt & Jaccard, Mark & Tiedemann, Ken, 2005. "Improving behavioral realism in hybrid energy-economy models using discrete choice studies of personal transportation decisions," Energy Economics, Elsevier, vol. 27(1), pages 59-77, January.
    23. Schafer, Andreas & Jacoby, Henry D., 2005. "Technology detail in a multisector CGE model: transport under climate policy," Energy Economics, Elsevier, vol. 27(1), pages 1-24, January.
    24. Koopmans, Carl C. & te Velde, Dirk Willem, 2001. "Bridging the energy efficiency gap: using bottom-up information in a top-down energy demand model," Energy Economics, Elsevier, vol. 23(1), pages 57-75, January.
    25. Haas, Reinhard & Schipper, Lee, 1998. "Residential energy demand in OECD-countries and the role of irreversible efficiency improvements," Energy Economics, Elsevier, vol. 20(4), pages 421-442, September.
    26. Klinge Jacobsen, Henrik, 1998. "Integrating the bottom-up and top-down approach to energy-economy modelling: the case of Denmark," Energy Economics, Elsevier, vol. 20(4), pages 443-461, September.
    27. Jean Charles Hourcade & Mark Jaccard & Chris Bataille & Frédéric Ghersi, 2006. "Hybrid Modeling: New Answers to Old Challenges," Post-Print halshs-00471234, HAL.
    28. Jason F. Shogren & Laura O. Taylor, 2008. "On Behavioral-Environmental Economics," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(1), pages 26-44, Winter.
    29. Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008. "Modeling endogenous technological change for climate policy analysis," Energy Economics, Elsevier, vol. 30(6), pages 2734-2753, November.
    30. Ian Ayres & Sophie Raseman & Alice Shih, 2009. "Evidence from Two Large Field Experiments that Peer Comparison Feedback Can Reduce Residential Energy Usage," NBER Working Papers 15386, National Bureau of Economic Research, Inc.
    31. Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
    32. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Institute of Transportation Studies, Working Paper Series qt02n9j6cv, Institute of Transportation Studies, UC Davis.
    33. Adam B. Jaffe & Robert N. Stavins, 1994. "Energy-Efficiency Investments and Public Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 43-66.
    34. Alcott, Blake, 2008. "The sufficiency strategy: Would rich-world frugality lower environmental impact," Ecological Economics, Elsevier, vol. 64(4), pages 770-786, February.
    35. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    36. Mau, Paulus & Eyzaguirre, Jimena & Jaccard, Mark & Collins-Dodd, Colleen & Tiedemann, Kenneth, 2008. "The 'neighbor effect': Simulating dynamics in consumer preferences for new vehicle technologies," Ecological Economics, Elsevier, vol. 68(1-2), pages 504-516, December.
    37. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    38. Cameron, Trudy Ann, 1985. "A Nested Logit Model of Energy Conservation Activity by Owners of Existing Single Family Dwellings," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 205-211, May.
    39. Ek, Kristina & Söderholm, Patrik, 2010. "The devil is in the details: Household electricity saving behavior and the role of information," Energy Policy, Elsevier, vol. 38(3), pages 1578-1587, March.
    40. Huntington, Hillard & Schipper, Lee & Sanstad, Alan H., 1994. "Editors' introduction," Energy Policy, Elsevier, vol. 22(10), pages 795-797, October.
    41. Hassett, Kevin A. & Metcalf, Gilbert E., 1993. "Energy conservation investment : Do consumers discount the future correctly?," Energy Policy, Elsevier, vol. 21(6), pages 710-716, June.
    42. R. Crassous & Jean Charles Hourcade & O. Sassi, 2006. "Endogenous structural change and climate targets modeling experiments with imaclim-R," Post-Print hal-00719272, HAL.
    43. Siller, Thomas & Kost, Michael & Imboden, Dieter, 2007. "Long-term energy savings and greenhouse gas emission reductions in the Swiss residential sector," Energy Policy, Elsevier, vol. 35(1), pages 529-539, January.
    44. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Resource and Energy Economics, Elsevier, vol. 31(3), pages 221-238, August.
    45. Mundaca, Luis, 2008. "Markets for energy efficiency: Exploring the implications of an EU-wide 'Tradable White Certificate' scheme," Energy Economics, Elsevier, vol. 30(6), pages 3016-3043, November.
    46. Fuminori Sano, Keigo Akimoto, Takashi Homma and Toshimasa Tomoda, 2006. "Analysis of Technological Portfolios for CO2 Stabilizations and Effects of Technological Changes," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 141-162.
    47. Nic Rivers & Mark Jaccard, 2005. "Combining Top-Down and Bottom-Up Approaches to Energy-Economy Modeling Using Discrete Choice Methods," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 83-106.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oskar Lecuyer & Ruben Bibas, 2011. "Combining climate and energy policies: synergies or antagonisms?," Post-Print hal-00801917, HAL.
    2. Bakhtyar, B. & Ibrahim, Y. & Alghoul, M.A. & Aziz, N. & Fudholi, A. & Sopian, K., 2014. "Estimating the CO2 abatement cost: Substitute Price of Avoiding CO2 Emission (SPAE) by Renewable Energy׳s Feed in Tariff in selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 205-210.
    3. Charlier, Dorothée & Risch, Anna & Salmon, Claire, 2018. "Energy Burden Alleviation and Greenhouse Gas Emissions Reduction: Can We Reach Two Objectives With One Policy?," Ecological Economics, Elsevier, vol. 143(C), pages 294-313.
    4. J. -F. Mercure & H. Pollitt & A. M. Bassi & J. E Vi~nuales & N. R. Edwards, 2015. "Modelling complex systems of heterogeneous agents to better design sustainability transitions policy," Papers 1506.07432, arXiv.org, revised Feb 2016.
    5. Oskar Lecuyer & Ruben Bibas, 2011. "Combining Climate and Energy Policies: Synergies or Antagonism? Modeling Interactions With Energy Efficiency Instruments," Working Papers 2011.98, Fondazione Eni Enrico Mattei.
    6. repec:gam:jeners:v:11:y:2018:i:1:p:241-:d:127853 is not listed on IDEAS
    7. Frédéric Branger & Louis-Gaëtan Giraudet & Céline Guivarch & Philippe Quirion, 2015. "Global sensitivity analysis of an energy-economy model of the residential building sector," Policy Papers 2015.01, FAERE - French Association of Environmental and Resource Economists.
    8. Fabio Grazi & Henri Waisman, 2015. "Agglomeration, Urban Growth and Infrastructure in Global Climate Policy: A Dynamic CGE Approach," Working Papers 2015.61, Fondazione Eni Enrico Mattei.
    9. Kim, Jimin & Hong, Taehoon & Jeong, Jaemin & Lee, Myeonghwi & Koo, Choongwan & Lee, Minhyun & Ji, Changyoon & Jeong, Jaewook, 2016. "An integrated multi-objective optimization model for determining the optimal solution in the solar thermal energy system," Energy, Elsevier, vol. 102(C), pages 416-426.
    10. zvingilaite, Erika & Klinge Jacobsen, Henrik, 2012. "Heat savings and heat generation technologies: Modelling of residential investment behaviour with local externalities," MPRA Paper 41545, University Library of Munich, Germany.
    11. repec:eee:rensus:v:78:y:2017:i:c:p:61-71 is not listed on IDEAS
    12. Oskar Lecuyer & Ruben Bibas, 2012. "Combining climate and energy policies : synergies or antagonism ? Modeling interactions with energy efficiency instruments," Working Papers hal-00866439, HAL.
    13. Zvingilaite, Erika & Klinge Jacobsen, Henrik, 2015. "Heat savings and heat generation technologies: Modelling of residential investment behaviour with local health costs," Energy Policy, Elsevier, vol. 77(C), pages 31-45.
    14. Frédéric Branger & Louis-Gaëtan Giraudet & Céline Guivarch & Philippe Quirion, 2014. "Sensitivity analysis of an energy-economy model of the residential building sector," CIRED Working Papers hal-01016399, HAL.
    15. Brita Bye & Taran Fæhn & Orvika Rosnes, 2015. "Residental energy efficiency and European carbon policies A CGE-analysis with bottom-up information on energy efficiency technologies," Discussion Papers 817, Statistics Norway, Research Department.
    16. Dorothée Charlier & Anna Risch & Claire Salmon, 2016. "Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone?," Policy Papers 2016.01, FAERE - French Association of Environmental and Resource Economists.
    17. Frédéric Branger & Louis-Gaëtan Giraudet & Céline Guivarch & Philippe Quirion, 2014. "Sensitivity analysis of an energy-economy model of the residential building sector," Working Papers hal-01016399, HAL.
    18. Trutnevyte, Evelina, 2016. "Does cost optimization approximate the real-world energy transition?," Energy, Elsevier, vol. 106(C), pages 182-193.
    19. Eoin Ó Broin & Érika Mata & Jonas Nässén & Filip Johnsson, 2015. "Quantification of the Energy Efficiency Gap in the Swedish Residential Sector," Post-Print hal-01219283, HAL.
    20. Li, Francis G.N. & Trutnevyte, Evelina & Strachan, Neil, 2015. "A review of socio-technical energy transition (STET) models," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 290-305.
    21. Mathy, Sandrine & Fink, Meike & Bibas, Ruben, 2015. "Rethinking the role of scenarios: Participatory scripting of low-carbon scenarios for France," Energy Policy, Elsevier, vol. 77(C), pages 176-190.

    More about this item

    Keywords

    Hybrid modeling; Residential heating; Barriers to energy efficiency; Rebound effect; Endogenous retrofitting dynamics; Intangible costs;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D10 - Microeconomics - - Household Behavior - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:426-445. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eneco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.