Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
| Session | |
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Energy Demand and Efficiency 6 Location: B132 Session Chair: Nils van der Vegte, Maastricht University | |
| Presentation 1 | |
The Influence of Energy Subsidies on Household Energy Use 1: ifo Institute, Germany; 2: Ludwig Maximilian University of Munich How can a sustainable transition to a green economy reduce residential energy consumption while addressing equity concerns? This paper examines how energy-related subsidies embedded in Germany’s basic security system affect household energy consumption, expenditures, and energy services. We develop a theoretical framework to study the incentives created by lump-sum transfers and full cost-coverage subsidies, accounting for the roles of energy efficiency and prices. We then empirically test its implications using data from the German Socio-Economic Panel and the Energy Saving Check. We document a novel empirical fact: subsidy recipients exhibit higher energy consumption and higher expenditures than comparable households. Yet, they do not enjoy better energy services, measured by indicators such as adequate indoor warmth. Mechanism analysis shows that these households face higher electricity prices and lag behind comparable households in terms of energy efficiency. These findings suggest that policies aimed at improving energy efficiency in low-income households are key to simultaneously achieving climate objectives and alleviating energy poverty by increasing energy services without raising energy consumption. | |

