Beyond good faith: Why evidence-based policy is necessary to decarbonize buildings cost-effectively in Germany. (October 2022)

• Record Type: Journal Article
• Authors: Singhal, Puja; Pahle, Michael; Kalkuhl, Matthias; Levesque, Antoine; Sommer, Stephan; Berneiser, Jessica
• Is Part Of: Energy policy. Volume 169(2022)
• Publication Date: 2022-10
• Subjects: Energy efficiency -- Decarbonization -- Housing sector -- Heat demand -- Evidence-based policy; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2022.113191
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: The ambitious climate targets set by industrialized nations worldwide cannot be met without decarbonizing the building stock. Using Germany as a case study, this paper takes stock of the extensive set of energy efficiency policies that are already in place and clarifies that they have been designed "in good faith" but lack in overall effectiveness as well as cost-efficiency in achieving these climate targets. We map out the market failures and behavioural considerations that are potential reasons for why realized energy savings fall below expectations and why the household adoption of energy-efficient and low-carbon technologies has remained low. We highlight the pressing need for data and modern empirical research to develop targeted and cost-effective policies seeking to correct these market failures. To this end, we identify some key research questions and identify gaps in the data required for evidence-based policy. Highlights: Critical gaps in empirical research to support current policy decisions in Germany. Policies targeting the building sector have yet to deliver expected outcomes. Household data required to understand energy consumption and investment behaviour. Quantify market failures and behavioural impediments to design targeted policies. Cost-efficiency is necessary to sustain public support for climate targets.