During recent international climate negotiations like in Paris 2015, the European Union agreed to reduce the emissions of greenhouse gases. Policy-makers target the residential sector as a major user of fossil energy because potential to improve the energy efficiency in existing houses is...

Implicit discount rates (IDRs) are employed in energy models to capture household investment decisions, yet the factors behind the IDR and their respective implications for policy-making usually remain blurred and fractional. The proposed comprehensive framework distinguishes three broad...