New publication: "Subsidy free-riding is positively correlated to the development of energy efficiency in the housing stock" [08.08.24]
Our new study examines the relationship between "free-riding" behavior in subsidy programs and the development of energy efficiency in buildings.
Surprisingly, it finds that a higher rate of free-riders—investors who would have made energy-efficient retrofits without subsidies—correlates with better energy efficiency in the building stock. This positive trend continues over time. The results suggest that subsidy programs, despite economic inefficiencies due to free-riding, can have a positive ecological impact.
https://doi.org/10.1007/s10668-024-05292-z