Achieving climate change mitigation goals requires the mobilization of all levels of society. The potential for reducing greenhouse gas (GHG) emissions from households has not yet been fully realized. Given the complex climate change situation around the world, the importance of behavioral economic insights is already understood. Changing household behavior in mitigating climate change is seen as an inexpensive and rapid intervention measure. In this paper, we review barriers of changing household behavior and systematize policies and measures that could help to overcome these barriers. A systematic literature review provided in this paper allows to define future research pathways and could be important for policy-makers to develop measures to help households contribute to climate change mitigation.
A wide range of climate change mitigation policies have been developed around the world and these policies have become one of the major concerns, however there is still debate among scientists about what are the main external benefits and how to account for them and prepare effective climate change mitigation policies that might be widely accepted by society in general. One of the main ways to assess external benefit of climate change mitigation in energy sector is to conduct Willingness to Pay (WTP) assessments for climate change mitigation options by households. There are many studies on WTP assessment for climate stability conducted in recent years. The paper surveys the existing literature on WTP for climate change mitigation policy in the energy sector. The aim of the paper is to identify the common variables across a varied set of WTP studies in order to establish a basis for comparison. The key variables selected for analysis of WTP studies for climate change mitigation in energy sector addressed in the paper are: the WTP assessment methods; the main attributes used for comparing alternatives in WTP studies, targeted climate change mitigation policies in energy sector, mathematical model used to estimate WTP, the main socio-demographic factors having impact on WTP for climate change mitigation policies. The analysis of WTP studies for climate change mitigation is grouped in two areas: renewables and energy efficiency measures in households. The paper provides analytical structure for future studies to evaluate the effects of variation in key comparative elements upon WTP.
The paper performed comparative assessment of greenhouse gas (GHG) emission trends and climate change mitigation policies in the fuel combustion sector of selected EU member states with similar economic development levels and historical pasts, and implementing main EU energy and climate change mitigation policies, having achieved different success in GHG emission reduction. The impact of climate change mitigation policies on GHG emission reduction was assessed based on analysis of countries’ reports to UNFCCC by identifying the key areas of GHG emission reduction, their GHG emission reduction potential, and the driving forces behind them. The study revealed that climate change mitigation policies that have been implemented so far in Bulgaria are less efficient than in Lithuania, as Bulgaria places priorities not on energy efficiency improvement and penetration of renewable energy sources, but on switching from coal to natural gas. The policy implications for strengthening GHG emissions reduction efforts are provided based on analysis conducted.
Although renewable energy adoption in the residential sector has increased significantly in the EU due to the governmental policies, aiming to reduce the barriers of renewable energy penetration, the full potential of renewable energy deployment in households is still not realized due to the behavioral and other barriers. One of the most important factors in the adoption of renewable energy technologies in households is the decision-making to implement renewables; therefore, the behavioral economics insights should be taken into account during the analysis of renewable energy acceptance by households. The paper provides a systematic literature review on renewable energy use in households by analyzing policies and measures, which could increase the use of renewable energy in households by overcoming the major barriers. The dynamics of renewable energy consumption in EU households was performed by applying Eurostat data, and the empirical case study was conducted in Lithuania to understand the main reasons of renewable energy acceptance by the household. Even though the use of renewable energy sources has increased significantly in the EU member states during the recent years, the study has found the following most common barriers that the traditional policies are unable to overcome: (1) high upfront cost and long pay-back period, (2) a lack of information and knowledge, (3) low priority of environmental concern, (4) resistance to change; human habits. The case study shows that the majority of Lithuanian households would like to use renewable energy technologies in their homes, but they encounter financial difficulties and lack of infrastructure. The policy recommendations were developed based on the results of the conducted study.
The European Commission introduced a package of measures to accelerate the shift to low-carbon energy transition in Europe. In 2014, EU member states agreed to reduce greenhouse gas emissions by at least 40% by 2030 compared to 1990 levels. The binding greenhouse gas emission targets for Member States from 2021 to 2030 for the transport, buildings, agriculture, waste, and land-use and forestry sectors were established. EU Member States should decide on their own how to meet the agreed upon 2030 target and implement climate-change-mitigation measures. All EU MSs have committed to prepare national energy and climate plans based on regulation on the governance of the energy union and climate action (EU)2018/1999, agreed as part of the Clean Energy for All Europeans package approved in 2019. The national plans outline how the EU Member States intend to implement the GHG reduction target by increasing their in energy efficiency, use of renewables, greenhouse-gas-emission reductions, interconnections, and research and innovation. This paper analyzes the energy and climate plans of the Baltic States and systematizes the main climate-change-mitigation policies in the energy sector targeting the household sector. The background of energy and climate planning is provided from a theoretical point of view, encompassing regional, local, and national energy and climate plans. The diffusion levels of renewables in the Baltic States were determined and the energy-climatic-friendly policies followed, by them, they were identified.
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