Fighting climate change with energy subsidies: A study in the Dutch specific subsidy to reduce energy consumption.
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2025-06-30
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en
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As national governments combat climate change, the Dutch government designed a subsidy to mitigate climate change by reducing household energy consumption. The subsidy had a budget of € 87 million and was issued between 2020 and 2021. This thesis studied the effectiveness and efficiency of this subsidy, employing a Generalised Synthetic Control Method. The data included a panel of 172 treated and 142 untreated municipalities between 2010 and 2023. The findings show that households in treated municipalities consumed, on average, 17.371 m3 less gas than if the municipality did not receive the subsidy. The subsidy was effective in reducing household energy consumption and consequently avoided 331,871 ton CO2 emission. The subsidy was also efficient, as this policy measure cost € 262.15 per avoided ton CO2, which is more efficient than two out of three similar subsidy schemes. The heterogeneity analysis shows that small municipalities with high voter turnout and small distances to social services might have an advantage in effectively and efficiently implementing this subsidy.
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Faculteit der Managementwetenschappen