Assessing residential energy efficiency policies subject to multiple market and behavioral frictions

Recognizing the multiple benefits of energy efficiency policies in the residential sector Western governments have implemented myriad policies in recent years. In practice, however, empirical assessments of these interventions find them economically inefficient. This gap between expectations and realizations calls for a better account of the key frictions impeding energy efficiency investment in policy assessments. In this thesis, I build a modeling framework that permits socio-economic assessment of a range of residential energy efficiency policies implemented in economies subject to market failures and behavioral anomalies. Achieving carbon neutrality requires ambitious policies to promote heat pumps and fully decarbonize the electricity system in France and most European countries. I find, however, that the CO2 externality is actually dominated by health, rental, and multi-family frictions in the ranking of justifications for energy efficiency policies. Lastly, I assess the current policies in France and show that they only close about half of the energy efficiency gap in space heating, which underlines the need for better targeting.

• Slide of the PhD Defense
• PhD Manuscript

Recommended citation: Vivier, L. Assessing residential energy efficiency policies subject to multiple market and behavioral frictions, 2024