The Department of Economics is pleased to welcome Prof. Mateus Souza (Universität Mannheim) to present his research on the energy pricing distortions that arise when apartment buildings share a common heating bill, a situation akin to the tragedy of the commons. While submetering can correct these distortions, does it necessarily lead to improved welfare?
Souza proposes a theoretical framework that incorporates shared billing and environmental externalities to assess the welfare impact of submetering. His analysis draws from a study of 265 apartment buildings in Switzerland. Event study estimates show that submetering reduces annual heating expenses by 9.5 percent, on average. Under certain benchmark assumptions, this average effect implies a welfare improvement only if the social cost of carbon is 239 CHF/tCO2 or larger. Machine learning estimates reveal substantial heterogeneity in treatment and welfare effects, suggesting a role for targeted interventions in this context.
Join us for an insightful discussion on energy efficiency, environmental externalities, and the role of submetering in improving welfare.
Practical information:
- Date: Wednesday 20 November
- Time: 12:30-13:30
- Location: Room A107, Stadscampus, building A
- Language: English
This seminar is free of charge. You don't need to register.