40% of Emission Reductions Due to Voluntary Home Actions

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TL/DR –

In 2021, households accounted for about one third of U.S. CO2 emissions. A study from Vanderbilt researchers suggests that households may play a key role in reducing emissions due to recent legislation, including the Infrastructure Investment and Jobs Act (IIJA) of 2021 and Inflation Reduction Act (IRA) of 2022. The study found that, while only a small proportion of funds from these acts are directed towards household actions, such actions could contribute to over 40% of all the CO2 reductions associated with the acts, highlighting the potential power of incentivizing household action for climate change mitigation.


Household Actions Key to Reducing U.S. Carbon Emissions

U.S. data shows that in 2021, households contributed to approximately a third of U.S. CO2 emissions. The residential sector accounted for over 19% of emissions with passenger and light duty vehicles adding another 22%. A new study by Vanderbilt researchers illustrates how legislation may leverage this by prioritizing household actions to drive significant CO2 emissions reductions.

The “Incentivizing household action: Exploring the behavioral wedge in the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act” uses REPEAT (Rapid Energy Policy Evaluation and Analysis Toolkit) modeling to show that a small proportion of funds from the IIJA 2021 and IRA 2022 could lead to a substantial reduction in emissions. The study suggests that funds directed towards voluntary household actions could account for almost half of total emissions reductions under both acts.

The study supports the idea that household energy consumption and carbon emissions in the U.S. can be significantly reduced through increased home energy efficiency and conservation.

The research provides a detailed analysis of funds targeting household actions, such as tax credits for electric vehicles and rebates for heat pump installations. Despite only 12% and 5.7% of climate and energy funds in the IRA and IIJA being directed towards household actions, these small investments could contribute to 40% or more of overall CO2 reductions, thus underlining the importance and effectiveness of household actions in combating climate change.

The authors recommend policy strategies such as prioritizing key actions, offering significant financial incentives, contextualizing marketing efforts, and simplifying processes. They also suggest equitable program designs, taking into account different household behaviors and socioeconomic scenarios. For instance, installing a new heat pump is more feasible for a homeowner than a renter. The study also notes that wealthier households produce more CO2 emissions than lower-income counterparts, emphasizing that addressing these inequities should be a priority in IIJA and IRA program design.

The research concludes that encouraging household action can not only reduce emissions, but also increase efficiency and alleviate inequitable energy burdens for low-income households. Thus, focusing on household action can promote both climate change mitigation and energy justice.

The complete study can be found here.


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