Beyond Good Faith: Why Evidence-Based Policy is Necessary to Decarbonize Buildings Cost-Effectively in Germany

29 Pages Posted: 25 Oct 2021 Last revised: 1 Jun 2022

See all articles by Puja Singhal

Puja Singhal

Potsdam Institute for Climate Impact Research (PIK)

Michael Pahle

Potsdam Institute for Climate Impact Research (PIK)

Matthias Kalkuhl

Mercator Research Institute on Global Commons and Climate Change (MCC)

Stephan Sommer

RWI - Leibniz-Institute for Economic Research

Antoine Levesque

Potsdam-Institut für Klimafolgenforschung (PIK)

Jessica Berneiser

Fraunhofer Institute for Solar Energy Systems (ISE)

Date Written: May 31, 2022

Abstract

The ambitious climate targets set by industrialized nations worldwide cannot be met without decarbonizing the building stock. Using Germany as a case study, this paper takes stock of the extensive set of energy efficiency policies that are already in place and clarifies that they have been designed “in good faith” but lack in overall effectiveness as well as cost-efficiency in achieving these climate targets. We map out the market failures and behavioural considerations that are potential reasons for why realized energy savings fall below expectations and why the household adoption of energy-efficient and low-carbon technologies has remained low. We highlight the pressing need for data and modern empirical research to develop targeted and cost-effective policies seeking to correct these market failures. To this end, we identify some key research questions and identify gaps in the data required for evidence-based policy.

Keywords: Energy Efficiency, Decarbonization, Housing Sector, Heat Demand, Evidence-Based Policy

Suggested Citation

Singhal, Puja and Pahle, Michael and Kalkuhl, Matthias and Sommer, Stephan and Levesque, Antoine and Berneiser, Jessica, Beyond Good Faith: Why Evidence-Based Policy is Necessary to Decarbonize Buildings Cost-Effectively in Germany (May 31, 2022). Available at SSRN: https://ssrn.com/abstract=3947800 or http://dx.doi.org/10.2139/ssrn.3947800

Puja Singhal (Contact Author)

Potsdam Institute for Climate Impact Research (PIK) ( email )

Telegrafenberg 31
Potsdam, 14473
Germany

Michael Pahle

Potsdam Institute for Climate Impact Research (PIK) ( email )

Telegrafenberg 31
Potsdam, Brandenburg 14473
Germany

Matthias Kalkuhl

Mercator Research Institute on Global Commons and Climate Change (MCC) ( email )

Torgauer Straße 12-15
Berlin, 10829
Germany

Stephan Sommer

RWI - Leibniz-Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Antoine Levesque

Potsdam-Institut für Klimafolgenforschung (PIK)

Telegrafenberg 31
Potsdam, Brandenburg 14473
Germany

Jessica Berneiser

Fraunhofer Institute for Solar Energy Systems (ISE) ( email )

Heidenhofstrasse 2
Freiburg, DE 79110
Germany

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