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Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone?

Author

Listed:
  • Dorothée Charlier

    (University of Montpellier)

  • Anna Risch

    (IAE Savoie Mont-Blanc, IREGE)

  • Claire Salmon

    (IAE Savoie Mont-Blanc, IREGE)

Abstract

In this article, we assess current public policies, designed to reduce greenhouse gas (GHG) emissions, lower energy consumption, and fight the “energy burden” in the long term, so that it might offer relevant policy recommendations. We develop an existing partial equilibrium model to take into consideration key determinants of excessive energy burden. This analysis reveals that public policies are not sufficient to reach the ambitious objectives for reducing energy consumption and GHG emissions in France. Moreover, the decreases that might occur disguise significant social disparities across households. The joint implementation of multiple instruments leads to interactions that diminish overall policy outcomes. Overall, current public policies produce estimated free-riding rates of 75%. Energy efficiency measures are thus insufficient; governments need to focus more on monetary poverty as a cause of low renovation rates and consider subsidies of renovation costs as a potential solution.

Suggested Citation

  • 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.
  • Handle: RePEc:fae:ppaper:2016.01
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    References listed on IDEAS

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    More about this item

    Keywords

    energy burden; public policies; bottom-up simulation; energy consumption; GHG emissions;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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