*3.2. Environmental Impact*

In FIDELIO, the monetary value of energy that is consumed by firms and households is linked to energy consumption and is then used to compute emissions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) related to energy production and consumption (see [23] for a description of the conversion factors from primary energy consumption to emissions). To describe the environmental impact of the proposed stricter energy efficiency requirements, we look at the variation of GHG emissions. In particular, for a synthetic measure of the GHG effect, the emissions are converted into CO2-equivalent units while using the Global Warming Potential (GWP), as in [34]. Conversion factors are 1 for CO2, 265 for N2O and 28 for CH4.

The emissions increase is, in absolute terms, smaller than the emission reduction that is driven by stricter energy efficiency requirements (as expected), and the net effect is a decrease in GHG emissions equal to 1.5 million tonnes. This reduction is driven by the industry producing electricity that is responsible for the 70% of the total reduction, followed by mining and quarrying (15%), sewerage and waste collection and treatment (10%), and the manufacture of coke and refined petroleum products (3%).

Figure 3 shows the industries that are responsible for the resulting increase in emissions and those industries that are responsible for emission reductions.

The three main industries showing the biggest shares of emission increases are the agriculture industry, the manufacture of food and beverages, and accommodation services. Together, they would cause GHG emissions to increase in around half a million tonnes, out of which 95% would correspond to the agriculture industry. This effect might be considered as rebound effects, a reduction in the expected environmental gains of the regulation caused by behavioral responses.

Figure 4 shows the distribution of emissions decrease among EU countries. Germany, Poland, and the United Kingdom are responsible of half of the total reduction of GHG emissions that are caused by the proposed stricter energy efficiency requirements on dishwashers, washing machines, and washer dryers.

**Figure 4.** Distribution of CO2-equivalent emissions decrease among EU countries (unit: percentage).
