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Climate Change, Buildings and Energy Prices

Author

Listed:
  • 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.

Suggested Citation

  • Alberto Gago & Michael Hanemann & Xavier Labandeira & Ana Ramos, 2012. "Climate Change, Buildings and Energy Prices," Working Papers fa04-2012, Economics for Energy.
  • Handle: RePEc:efe:wpaper:fa04-2012
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    References listed on IDEAS

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    Cited by:

    1. Ana Ramos & Xavier Labandeira & Andreas Löschel, 2016. "Pro-environmental Households and Energy Efficiency in Spain," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 367-393, February.
    2. Xavier Labandeira & Ana Ramos, 2012. "Household Environmental Attitudes and Energy Efficiency in Buildings: Evidence from Spanish Data," Working Papers fa08-2012, Economics for Energy.
    3. Ramos, A. & Gago, A. & Labandeira, X. & Linares, P., 2015. "The role of information for energy efficiency in the residential sector," Energy Economics, Elsevier, vol. 52(S1), pages 17-29.
    4. Ana Ramos & Xavier Labandeira & Andreas Lšschel, 2015. "Pro-Environmental Households and Energy Efficiency in Spain," Working Papers 01-2015, Economics for Energy.

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