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Energy and Emissions in the Building Sector: A Comparison of Three Policies and Their Combinations

Owen Comstock and Erin Boedecker

Year: 2011
Volume: Volume 32
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-3
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Abstract:
Standards, subsidies, and carbon taxes are among the measures often considered to reduce energy consumption and carbon dioxide (CO2) emissions in the buildings sector. Using a modeling system developed by the U.S. Energy Information Administration, residential and commercial sector standards and subsidies were each modeled with and without a carbon tax to determine if a multi-policy approach would be redundant. A separate case examining a carbon tax was also completed for comparison. Between the two equipment-based policies, subsidies achieved more energy and CO2 emissions reductions at less cost to consumers, as incremental investment costs were shifted to the government. When either of the equipment-based policies was combined with a carbon tax, their energy-and carbon-reducing effects were more additive than redundant.





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