Thoughts on a Federal Government Stimulus Package for Buildings

9 Pages Posted: 23 Apr 2021 Last revised: 27 Apr 2021

See all articles by Christoph Reinhart

Christoph Reinhart

Massachusetts Institute of Technology (MIT) - School of Architecture and Planning

Zachary Berzolla

Massachusetts Institute of Technology (MIT) - School of Architecture and Planning

Henry D. Jacoby

Massachusetts Institute of Technology (MIT) - Sloan School of Management

John M. Reilly

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change

Cassia Schuler

Wellesley College, Students

Date Written: April 22, 2021

Abstract

Residential buildings account for 22% of U.S. carbon emissions and there is widespread consensus that these carbon emissions can only be reduced if buildings become both more efficient and switch all of their fuel sources to electricity. We have developed an outline for an economic recovery package that would support energy retrofits for the 84 million detached single-family homes in the U.S. The goal of the program is to raise the nationwide retrofitting rate to 4% by 2030 so that all single-family homes will be retrofitted by 2050. It is assumed that market forces will self-sustain this 4% retrofitting rate after the program phases out. These retrofits, coupled with a decarbonizing power grid, would cut carbon emissions from U.S. residential homes up to 85% by 2050, leading to up to 11.5 billion tons of CO2 reductions and creating up to 265,000 long term clean tech jobs distributed across the nation. Estimated program costs would be up to $240 billion over ten years.

Keywords: building retrofits, stimulus package, electrification, energy efficiency

Suggested Citation

Reinhart, Christoph and Berzolla, Zachary and Jacoby, Henry D. and Reilly, John M. and Schuler, Cassia, Thoughts on a Federal Government Stimulus Package for Buildings (April 22, 2021). Available at SSRN: https://ssrn.com/abstract=3832381 or http://dx.doi.org/10.2139/ssrn.3832381

Christoph Reinhart

Massachusetts Institute of Technology (MIT) - School of Architecture and Planning ( email )

United States

Zachary Berzolla (Contact Author)

Massachusetts Institute of Technology (MIT) - School of Architecture and Planning ( email )

United States

HOME PAGE: http://linkedin.com/in/zachary-berzolla

Henry D. Jacoby

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E52-444
Cambridge, MA 02142
United States
617-253-6609 (Phone)
617-258-6855 (Fax)

John M. Reilly

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change ( email )

E19-429
77 Massachusetts Ave
Cambridge, MA 02139
United States
617-253-8040 (Phone)

Cassia Schuler

Wellesley College, Students ( email )

Wellesley, MA
United States

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