FEEM working papers "Note di lavoro" series
2014 .097

How Effective Are Energy-Efficiency Incentive Programs? Evidence from Italian Homeowners


Autori: Anna Alberini, Andrea Bigano
Serie: Energy: Resources and Markets
Editor: Giuseppe Sammarco
Tipo: Journal
Parole chiave: Energy-efficiency Incentives, Free Riding, Adverse Selection, Stated Preferences, CO2 Emissions Reductions; CO2 emissions Reductions Supply Curves, Residential Energy Consumption
Numero JEL: Q41, Q48, Q54, Q51
JEL: Energy Economics
Pagine: Volume 52, Supplement 1, Pages S76-S85
Data: 12/2015

Abstract

We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse selection and free riding issues, we ask stated preference questions to those who weren’t planning energy efficiency upgrades any time soon. We argue that these persons are not affected by these behaviors. We use their responses to fit an energy-efficiency renovations curve that predicts the share of the population that will undertake these improvements for any given incentive level. This curve is used to estimate the CO2 emissions saved and their cost-effectiveness. Respondents are more likely to agree to a replacement when the savings on the energy bills are larger and experienced over a longer horizon, and when rebates are offered to them. Reminding about CO2 (our non-monetary incentive) had little effect. Even under optimistic assumptions, the cost-effectiveness of incentives of size comparable to that in the Italian tax credit program is generally not favorable.

***

Suggested citation: Anna Alberini, Andrea Bigano, How effective are energy-efficiency incentive programs? Evidence from Italian homeowners, Energy Economics, Volume 52, Supplement 1, December 2015, Pages S76-S85, ISSN 0140-9883, http://dx.doi.org/10.1016/j.eneco.2015.08.021.

Download file
Scarica il file PDF
links
Link

FEEM Newsletter

Iscriviti per rimanere aggiornato.

I Suoi dati saranno trattati dalla Fondazione Eni Enrico Mattei. – Titolare del trattamento – per ricevere via posta elettronica la newsletter della Fondazione. Il conferimento dell’indirizzo e-mail è necessario alla fornitura del servizio. La invitiamo a consultare la Privacy Policy per ottenere maggiori informazioni a tutela dei Suoi diritti.

Questo Sito utilizza cookie tecnici e analytics, nonché consente l’invio di cookie di profilazione di terze parti.
Chiudendo questo banner o comunque proseguendo la navigazione sul Sito manifesti il tuo consenso all’uso dei cookie. Per ulteriori informazioni e per esprimere scelte selettive in ordine all’uso dei cookie vedi la   Cookie PolicyOk