Social equity provisions in energy efficiency obligations: An ex-post analysis of the French program

We evaluate the distributional effects of the French energy efficiency obligations, focusing on a reform implemented from 2016 to 2018. This reform introduced two social equity measures: a sub-obligation requiring energy suppliers to achieve energy savings in residences occupied by fuel-poor households, and a bonus system granting additional certificates to suppliers supporting investments in such dwellings. Our analysis, based on aggregated data from 2019, reveals that the program initially succeeded in channeling financial benefits towards low-income households. However, the primary driver of this positive outcome – generous bonuses – went to pose a risk of reversing the intended effect. We provide a detailed explanation of this shift and offer policy recommendations for improving social equity provisions. Our findings indicate that there may be no discernible advantage in combining both measures to address social equity concerns, advocating instead for a program based solely on the sub-obligation.