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DECARBONIZING SPACE HEATING WITH HEAT PUMPS

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DECARBONIZING SPACE HEATING WITH HEAT PUMPS ( decarbonizing-space-heating-with-heat-pumps )

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a limited impact on ASHP deployments because they do not affect up-front costs or translate into a large portion of the life-cycle costs of a space heating appliance. However, higher carbon prices can have a significant impact on life-cycle costs. And, if combined with a binding emissions target (through a cap-and-trade program or a carbon tax with an emissions target mechanism),61 a carbon price could ensure that fossil fuel use is phased out over time. Most economists favor a carbon price as a cornerstone of decarbonization policy because it does not dictate where and how emissions reductions must take place. ● Technology standards that ban the use of fossil fuels. A middle ground between mandating the use of ASHPs and an economy-wide emissions cap would be technology standards that gradually phase out the use of furnaces and boilers for space heating. This would be more prescriptive than a carbon price, but, unlike a technological mandate, it would encourage both ASHPs and other low-carbon technologies. This is not an exhaustive list of potential policies for promoting ASHPs. It does not include policies for promoting RNG, hydrogen, or other low-carbon space heating strategies. Policy makers should not adopt every one of the policies listed above, as some would be redundant with others. And policy makers should not pick just one, since many of these policies would complement one another. For example, an economy-wide carbon price with binding emissions targets combined with support for innovation and a portfolio of energy efficiency incentives and standards could create a cost-effective portfolio of policies that could ensure the decarbonization of space heating in the United States by midcentury. DECARBONIZING SPACE HEATING WITH AIR SOURCE HEAT PUMPS ENERGYPOLICY.COLUMBIA.EDU | DECEMBER 2019 | 31

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DECARBONIZING SPACE HEATING WITH HEAT PUMPS

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