Energy efficiency policies in an agent-based macroeconomic model

Energy efficiency can help facing the climate crises. Yet the energy intensity has decreased more slowly than required to achieve climate goals. Based on this premise, we build an agent-based model to study the effects of different energy efficiency policies. Policies analysed range from indirect policies - taxes, incentives, and subsidies - to direct technological policies, where a public research laboratory invests in R&D to establish a new technological energy efficiency paradigm. Results reveal that, although most of the policies effectively reduce energy intensity, the research lab is the most efficient in promoting energy efficiency without negative impacts on macroeconomic and public finance conditions. However, the success of this policy requires a long-term commitment, highlighting the importance of complementing this strategy with more ready to usemeasures. The findings also indicate that most policies do not induce significant macroeconomic rebound effects. Concerns about macroeconomic rebound effects may likely be overstated.

Automated summary

Energy efficiency is crucial in addressing climate crises, and the research suggests that a public research laboratory implementing direct technological policies is the most effective approach without negative impacts on the economy and public finance. However, long-term commitment and complementary measures are important for the success of this policy.