CO 2 emission reduction policies in the greek residential sector: a methodological framework for their economic evaluation S. Mirasgedis * ,E.Georgopoulou,Y.Sarafidis,C.Balaras,A.Gaglia,D.P.Lalas National Observatory of Athens, Lofos Nymfon, Thesseon, Athens 11810, Greece Received 27 January 2003; accepted 14 June 2003 Abstract This paper outlines a methodological framework for the economic evaluation of CO 2 emissions abate- ment policies and measures in the residential sector, taking into consideration both economic and social costs/benefits. The approach includes two stages: first, the measures under consideration are evaluated on the basis of a cost effectiveness analysis, which takes into account only the related net financial costs, thus highlighting win–win actions (i.e. measures presenting an economic benefit for end users without the provision of any economic subsidies or other similar policies); and second, the measures are re-evaluated using an integrated cost benefit analysis (where both the private and external costs/benefits are taken into account). The economic performance of the measures examined incorporates the effects of a variety of parameters, such as the regionÕs climate, size and age of buildings, etc., which significantly affect the re- sulting ranking. The implementation of this framework in the Greek residential sector identified and pri- oritizedasignificantemissionsreductionpotential,whichcouldbeachievedwithwin–winmeasuresand/or interventionsthatpresentanetsocialbenefit.Measureswithnegativeeconomiccostbutpositivenetsocial benefit for the majority of the buildings examined include: (i) regular inspection of central heating boilers, (ii)useofthermostatsincentralheatingboilers,(iii)sealingofopenings,(iv)installationofsolarcollectors for hot water etc. The monetization of environmental benefits is shown to provide a powerful tool for highlighting priority actions in the context of a climate change mitigation policy. Ó 2003 Elsevier Ltd. All rights reserved. Keywords: Climate change; Buildings; External cost; Energy conservation * Corresponding author. Tel.: +30-210-3490153; fax: +30-210-3490159. E-mail addresses: seba@meteo.noa.gr, seba@env.meteo.noa.gr (S. Mirasgedis). 0196-8904/$ - see front matter Ó 2003 Elsevier Ltd. All rights reserved. doi:10.1016/S0196-8904(03)00160-2 Energy Conversion and Management 45 (2004) 537–557 www.elsevier.com/locate/enconman