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 it is required to achieve climate goals. Based on this premise, we build an agent-based model to study the effects of different policies on energy efficiency. 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 paradigm on energy efficiency. Results reveal that while all policies tested are effective in reducing energy intensity, the public research lab is the most efficient in promoting energy efficiency without any 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 immediate measures. The findings also indicate that most policies do not induce significant macroeconomic rebound effects