Do Sustainable Energy Policies Matter for Reducing Greenhouse Gas Emissions?
48 Pages Posted: 3 Jan 2020
Date Written: December 13, 2019
Yes, they matter. To reply to this question, we assess the impact of energy eﬃciency and renewable energy policies on six diﬀerent air pollutants: carbon dioxide (CO2), methane (CH4), nitrous oxides (N2O), non-methane volatile organic compounds (NMVOCs), nitrogen oxides (NOx) and sulphur dioxide (SO2) in the case of the Italian provinces in the decade 2005-2015. The empirical analysis is per-formed in a panel data context by means of propensity score matching with multiple treatment, since our framework is characterized by the presence of two treatments, corresponding to the two diﬀerent energy policies analyzed, i.e. energy eﬃciency policy and renewable policy. These two policies can be applied by each province as mutually exclusive strategies or as joint strategies. Our results show that renewable policies are the most eﬀective in terms of climate goals especially when implemented on a local scale, while energy eﬃciency policies alone are ineﬀective. Moreover, the success of these policies depends on the type of pollutant to be reduced. Finally, we note that the eﬀect of these two policies was reinforced by the counter-cyclical ﬁscal policies implemented to contrast the Global Financial Crisis in 2008.
Keywords: Energy eﬃciency policies; Renewable energy policies; Global air pollutants; Local air pollutants; Propensity score matching with multiple treatment; Italian provinces
JEL Classification: Q50; Q40; Q53; Q58; Q48; Q20
Suggested Citation: Suggested Citation