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Energy Efficiency of Residential Buildings in the European Union – An Exploratory Analysis of Cross-Country Consumption Patterns

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Listed:
  • Thonipara, Anita
  • Runst, Petrik
  • Ochsner, Christian
  • Bizer, Kilian

Abstract

Despite a common EU directive on energy efficiency in residential buildings, levels of energy efficiency differ vastly across European countries. This article analyses these differences and investigates the effectiveness of different energy efficiency policies in place in those countries. We firstly use panel data to explain average yearly energy consumption per dwelling and country by observable characteristics such as climatic conditions, energy prices, income, and floor area. We then use the unexplained variation by sorting between-country differences as well as plotting within-country changes over time to identify better performing countries. These countries are analysed qualitatively in a second step. We conduct expert interviews and examine the legal rules regarding building energy efficiency. Based on our exploratory analysis we generate a number of hypotheses. First, we suggest that regulatory standards, in conjunction with increased construction activity, can be effective in the long run. Second, the results suggest that carbon taxation represents an effective means for energy efficiency.

Suggested Citation

  • Thonipara, Anita & Runst, Petrik & Ochsner, Christian & Bizer, Kilian, 2018. "Energy Efficiency of Residential Buildings in the European Union – An Exploratory Analysis of Cross-Country Consumption Patterns," ifh Working Papers 12/2018, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
  • Handle: RePEc:zbw:ifhwps:122018
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    References listed on IDEAS

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    1. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.
    2. Joelsson, Anna & Gustavsson, Leif, 2009. "District heating and energy efficiency in detached houses of differing size and construction," Applied Energy, Elsevier, vol. 86(2), pages 126-134, February.
    3. Bigano, Andrea & Bosello, Francesco & Marano, Giuseppe, 2006. "Energy Demand and Temperature: A Dynamic Panel Analysis," International Energy Markets Working Papers 12117, Fondazione Eni Enrico Mattei (FEEM).
    4. Eoin Ó Broin & Jonas Nässén & Filip Johnsson, 2015. "Energy efficiency policies for space heating in EU countries: A panel data analysis for the period 1990–2010," Post-Print hal-01205485, HAL.
    5. Feser, Daniel & Runst, Petrik, 2016. "Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success," Energy Policy, Elsevier, vol. 98(C), pages 309-317.
    6. Ó Broin, Eoin & Nässén, Jonas & Johnsson, Filip, 2015. "Energy efficiency policies for space heating in EU countries: A panel data analysis for the period 1990–2010," Applied Energy, Elsevier, vol. 150(C), pages 211-223.
    7. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, April.
    8. Matthew Ranson & Lauren Morris & Alex Kats-Rubin, 2014. "Climate Change and Space Heating Energy Demand: A Review of the Literature," NCEE Working Paper Series 201407, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2014.
    9. Filippini, Massimo & Hunt, Lester C. & Zorić, Jelena, 2014. "Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector," Energy Policy, Elsevier, vol. 69(C), pages 73-81.
    10. Werner, Sven, 2017. "District heating and cooling in Sweden," Energy, Elsevier, vol. 126(C), pages 419-429.
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    Cited by:

    1. Runst, Petrik & Thonipara, Anita, 2019. "Dosis facit effectum: Why the scope of the carbon tax matters - Evidence from the Swedish residential sector," ifh Working Papers 19/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    More about this item

    Keywords

    carbon-taxation; energy efficiency; energy conservation; climate policy; residential buildings;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • P18 - Economic Systems - - Capitalist Systems - - - Energy; Environment
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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