Economics of adaptation of housing to climate constraints
Date
10 mai 2016Lieu
Salle Raymond Aron - Université Paris Dauphine-PSLDescription
PROGRAMME AND PRESENTATIONS
The Seminar on Research in Energy Economics at Paris-Sciences-Lettres (PSL) is jointly organized by the CERNA (MINES PARIS TECH), the CGEMP (Université Paris-Dauphine), the Chaire European Electricity Markets (Université Paris-Dauphine), and i3 (l’Institut interdisciplinaire de l’innovation), members of PSL. It is animated by François LEVEQUE (MINES PARIS TECH), Dominique FINON (Chaire European Electricity Markets, CNRS-CIRED) and Patrice GEOFFRON (Director, CGEMP, Université Paris-Dauphine).
Dorothée Charlier, Maître de conférences, Université Montpellier 1
Energy-Efficiency Investments under the Variety of Incentives among French Households
Presentation
The residential sector offers considerable potential for reducing energy use through energy-efficient renovations. The objective of the presentation is twofold. First, it aims to provide initial empirical evidence of the extent to which split incentives between landlords and tenants may lead to underinvestment. Second, it investigates the influence of tax credits and energy burdens on energy efficiency expenditures. Given the complexity of studying the decision to invest in energy-saving renovations, a bivariate Tobit model is used to compare decisions about energy-efficient works and repair works, even when the renovation expenditures seem quite similar. The analysis shows that tenants are doubly penalized: they have high energy expenditures due to energy-inefficient building characteristics, and because they are poorer than homeowners, they are unable to invest in energy-saving systems. The results confirm that tax credits are ineffective in the split incentives context. In terms of public policy, the government should focus on low-income tenants, and mandatory measures such as minimum standards seem appropriate. Financial support from a third-party financer also might be a solution.
(Paper published in Energy Policy, 2015, vol. 87, pp.465-479).
Matthieu Glachant, Professor, Mines ParisTech
Adaptation of American Homes to Climate Change
Presentation
This paper assesses the economic cost of adaptation in US dwellings through home improvements and changes in energy consumption. Using household-level data, we estimate the adaptation cost per household to be low: 90 USD for a 1°F increase. This is driven by the fact that the installation and more intensive use of additional air-conditioners are partially offset by lower needs for space heating. These findings deliver an optimistic message on the adaptive capacity of US houses.
(Working Paper co-authored with F. Cohen (LSE), M. Sodeberg (Mines Paris tech)).