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Home Energy Efficiency Investments in Response to Energy Price Variations: Evidence from France
1 : Mines ParisTech
(ENSMP)
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Site web
ministère de l'économie et des finances publiques
60, boulevard Sait-Michel, 75006 Paris -
France
2 : Mines-Paristech
* : Auteur correspondant
MINES ParisTech - École nationale supérieure des mines de Paris
This paper studies the effect of an increase in energy prices on home energy efficiency investments. Relying on French micro panel data, we find that a 10% increase of the expected heating fuel price increases the odds of investing in home energy efficiency by 5%. If we restrict to investments in heating renovation, the overall investment expenditures would then increase by 27% in France. These results suggest that energy taxation could substantially stimulate residential energy retrofits.
