Phasing out fossil fuel in the residential sector: Should new gas boilers be banned ?

Résumé 0

The low uptake of low-carbon heating systems across Europe has prompted au- thorities to consider more ambitious measures, including a complete ban on the instal- lation of new fossil fuel boilers. In this analysis, we assess this measure by simulating 3,072 scenarios covering major uncertainties in a framework that includes both real- istic policy response and key interactions between the residential and energy sectors. Taking France as a case study, we demonstrate that the ban is critical to meet car- bon neutrality. Despite costly investments in heating system, the ban leads to higher cost-effectiveness across uncertainties, by saving additional flexibility capacity in the energy system. We finally illustrate how a well-designed subsidy program is instrumen- tal in mitigating horizontal and vertical inequalities that may arise from the policy’s implementation.

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