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Does the stick make the carrot more attractive? State mandates and uptake of renewable heating technologies

Bibliographic Data

ID21463563
AuthorsRobert Germeshausen (Centre for European Economic Research), Kathrine von Graevenitz (0000-0003-2683-9683, University of Mannheim, corresponding author), Martin Achtnicht (Leibniz Institute of Ecological Urban and Regional Development)
Year2022
Volume92
Pages103753
Publication date2022-01-01
Open AccessYes
TypeARTICLE
VenueRegional Science and Urban Economics (JOURNAL)
Journal identifiersISSN: 0166-0462 • E-ISSN: 1879-2308
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.regsciurbeco.2021.103753
OpenAlexW2784304378
LanguageEN
Citations received1
References cited24

Command and control regulation is a popular tool for mitigating greenhouse gas emissions from the building stock. We exploit the introduction of a state-specific mandate in Germany on renewable heating when replacing the heating system in existing homes. We study the effect of the mandate on the uptake of subsidies for renewable heating technologies using unique data from a pre-existing federal government subsidy scheme. Using a geographic discontinuity design, we find that the mandate has positive effects on take-up of these subsidies, with 2 additional subsidized installations per 1000 eligible buildings in the existing building stock on average. Effects are larger in municipalities where adoption rates as measured by the subsidy scheme were below median prior to the introduction of the mandate. However, we also find suggestive evidence that retrofitting activities in the state declined in response to the introduction of the mandate

Business · Computer security · Economics · Environmental economics · Exploit · Greenhouse gas · Mandate · Market economy · Natural resource economics · Political science · Renewable energy · Retrofitting · Subsidy · Climate Change Policy and Economics · Computer Science · Economic and Environmental Valuation · Energy, Environment, and Transportation Policies · Engineering

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Citations per year0.5
Citation span2024 - 2024 (1)
Highly citedNo

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