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Energy efficiency policies in an agent-based macroeconomic model

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  • Amendola, Marco
  • Lamperti, Francesco
  • Roventini, Andrea
  • Sapio, Alessandro

Abstract

Energy efficiency can help facing the climate crises. Yet the energy intensity has decreased more slowly than required to achieve climate goals. Based on this premise, we build an agent-based model to study the effects of different energy efficiency policies. Policies analysed range from indirect policies – taxes, incentives, and subsidies – to direct technological policies, where a public research laboratory invests in R&D to establish a new technological energy efficiency paradigm. Results reveal that, although most of the policies effectively reduce energy intensity, the research lab is the most efficient in promoting energy efficiency without negative impacts on macroeconomic and public finance conditions. However, the success of this policy requires a long-term commitment, highlighting the importance of complementing this strategy with more “ready to use” measures. The findings also indicate that most policies do not induce significant macroeconomic rebound effects. Concerns about macroeconomic rebound effects may likely be overstated.

Suggested Citation

  • Amendola, Marco & Lamperti, Francesco & Roventini, Andrea & Sapio, Alessandro, 2024. "Energy efficiency policies in an agent-based macroeconomic model," Structural Change and Economic Dynamics, Elsevier, vol. 68(C), pages 116-132.
    • Handle: RePEc:eee:streco:v:68:y:2024:i:c:p:116-132
    DOI: 10.1016/j.strueco.2023.10.003
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    More about this item

    Keywords

    Energy efficiency policies; Energy intensity; Sustainability; Rebound effect; Agent-based modelling;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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