Essays on the public economics of decarbonization: Low-income households and industry

This dissertation contributes to the public economics of decarbonization, with a particular focus on energy efficiency in low-income households. Across four chapters, it investigates monetary and behavioral barriers to investment in energy-using durables and examines the optimal design of policy instruments for addressing low-income populations. The empirical analyses draw on administrative data from over 400,000 energy audits conducted within Germany’s Stromspar-Check—the country’s largest energy efficiency assistance program targeting households in the bottom decile of the income distribution. This rich dataset enables a granular analysis of investment decisions among a typically understudied but policy-relevant group. The research centers on the program’s refrigerator replacement scheme, which offers subsidies for replacing inefficient appliances. Combining administrative records, a field experiment embedded in the program, and survey data from energy advisors, the dissertation sheds light on how financial incentives, behavioral frictions, and advisor characteristics shape household decisions. The findings highlight the importance of tailored program design, revealing that both monetary and non-monetary factors limit energy-efficient investments and that informational interventions can partially mitigate these barriers. The final chapter extends the analysis to the industrial sector by examining the environmental effects of mergers and acquisitions in European manufacturing. Linking firm-level emissions data to ownership records, the chapter uses a staggered event-study approach to assess whether acquisitions influence environmental performance. The results provide no evidence of post-acquisition improvements in emissions or emissions intensity. This suggests that no environmental technology transfers occur between targets and acquiring firms.