Greener Homes: An Ex-Post Estimate of the Cost of Carbon Dioxide Emission Reduction using Administrative Micro-Data from the Republic of Ireland

We assess the subsidy for the installation of biomass boilers and woodgasification boilers under the Greener Homes Scheme in Ireland. We find that the(implicit) subsidy per tonne of carbon dioxide avoided varies hugely acrosshouseholds. The current policy costs 17 % too much for the emissions avoided, oravoids 17 % too little for the money spent. The subsidy reduces net social gain(including environmental benefits but excluding producer surplus) by 42 %.