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Quantifying the distributional impact of energy efficiency measures

Mccoy, Daire ORCID: 0000-0001-6637-2227 and Kotsch, Raphaela A. (2021) Quantifying the distributional impact of energy efficiency measures. Energy Journal, 42 (6). ISSN 0195-6574

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Identification Number: 10.5547/01956574.42.6


The distributional impact of the low-carbon transition is an increasingly important topic both for academics and policymakers. Quantifying where the costs and benefits fall can provide greater insight into the equity and cost-effectiveness of government policies, and improve our understanding of household investment decisions. This paper provides new evidence on the distribution of returns from energy efficiency measures both over time and across household-type. A range of econometric techniques are applied to a database of over four million households over an eight year period to quantify heterogeneity, persistence and how these factors impact the relative cost-effectiveness of measures. Results suggest that more deprived households experience lower energy savings, the difference persists over time, and that significantly heterogeneity may be present across levels of deprivation and income deciles that can not be explained by differences in baseline consumption. Measures have been largely cost-effective but savings are much lower than previous policy evaluations using ex-ante estimates would suggest.

Item Type: Article
Official URL:
Additional Information: © 2020 International Association for Energy Economics
Divisions: Geography & Environment
Grantham Research Institute
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HD Industries. Land use. Labor
Date Deposited: 17 Dec 2020 11:15
Last Modified: 16 May 2024 03:15

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