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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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  • Leahy, Eimear
  • Tol, Richard S. J.

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%.

Suggested Citation

  • Leahy, Eimear & Tol, Richard S. J., 2011. "Greener Homes: An Ex-Post Estimate of the Cost of Carbon Dioxide Emission Reduction using Administrative Micro-Data from the Republic of Ireland," Papers WP388, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp388
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    References listed on IDEAS

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    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 2011-09-25 01:34:43

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    Cited by:

    1. Richard S.J. Tol, 2018. "Energy and Climate," Working Paper Series 1618, Department of Economics, University of Sussex Business School.
    2. Tol, Richard S.J., 2013. "Targets for global climate policy: An overview," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 911-928.
    3. Tol, Richard S.J., 2017. "The structure of the climate debate," Energy Policy, Elsevier, vol. 104(C), pages 431-438.

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    More about this item

    Keywords

    cost/Ireland/Policy/Republic of Ireland;

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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