The relevance of consumer preferences and behaviour for climate policy design: Evidence from Germany

Abstract

The transition of the energy system and radical decarbonisation of the economy represents a strong change in a rather short period of time. In this article, we discuss the relevance of aspects of behaviour in relation to the transition of the energy system. We focus on three aspects: First, the benefits and disadvantages of local policies and initiatives. Second, aspects of behaviour relating to adaptation to technology based on a field study on energy-efficient refurbishments. Third, distributive effects of ambitious climate policy and expected changes in consumption patterns and welfare of households. Overall, preferences and behaviour have important implications for the effectiveness and long-term success of (ambitious) climate policies and should therefore receive greater attention in policy design.