Analysis of tax incentives for energy-efficient durables in the EU

Climate change is one of the most significant challenges faced by societies this century. Energy consumption is directly associated with CO 2 emissions and climate change. The European Commission has set out emission reduction targets that require a great deal of energy consumption savings in the ne...

Full description

Saved in:
Bibliographic Details
Published in:Energy policy 2009-12, Vol.37 (12), p.5662-5674
Main Authors: Markandya, Anil, Ortiz, Ramon Arigoni, Mudgal, Shailendra, Tinetti, Benoit
Format: Article
Language:English
Subjects:
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Climate change is one of the most significant challenges faced by societies this century. Energy consumption is directly associated with CO 2 emissions and climate change. The European Commission has set out emission reduction targets that require a great deal of energy consumption savings in the next 10 years in European countries. This paper presents the results of an analysis of the potential cost-effectiveness of different policy options aimed to foster the production and consumption of energy-efficient appliances in different European countries. Our results suggest that incentives to promote the use of energy-efficient appliances can be cost-effective, but whether or not they are depends on the particular country and the options under consideration. From the cases considered, tax credits on boilers appear to be a cost-effective option in Denmark and Italy, while subsidies on CFLi bulbs in France and Poland are cost-effective in terms of €/ton of CO 2 abated. Comparing the subsidies against the energy tax options, we find that the subsidies are in most cases less cost-effective than the energy tax.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2009.08.031