Article - April 4, 2022
How can Europe reduce the energyconsumption and increase the pace and depth of renovation investment in the residential building sector in a cost-effective and fair way, while pursuing climate neutrality towards 2050?
By removing non-market barriers, argues a new paper co-authored by Theofano Fotiou, Pantelis Capros and panagiotis fragkos. Adopting, on top, economic subsidies) and regulatory measures(energyperformance standards) creates the right policy mix: a compromise between the costeffectiveness of the policy budget and the distributional impacts across building and consumer types.
The paper rests on the findings of PRIMES-BuiMo, a model that represents in detail economic, regulatory, and institutional policies and measures specific to the residential sector.
The model is designed in such way as to capture the high heterogeneity of building types, consumer categories and behaviours ~
This allows it to:
1. assess the effectiveness of bottomup policy measures in removing market and non-market barriers and inciting energy efficiency investment; and
2. shed light on the particularities of certain income classes, preventing their exposure to energy and technology poverty.