Achieving climate change mitigation goals requires the mobilization of all levels of society. The potential for reducing greenhouse gas (GHG) emissions from households has not yet been fully realized. Given the complex climate change situation around the world, the importance of behavioral economic insights is already understood. Changing household behavior in mitigating climate change is seen as an inexpensive and rapid intervention measure. In this paper, we review barriers of changing household behavior and systematize policies and measures that could help to overcome these barriers. A systematic literature review provided in this paper allows to define future research pathways and could be important for policy-makers to develop measures to help households contribute to climate change mitigation.

Although renewable energy adoption in the residential sector has increased significantly in the EU due to the governmental policies, aiming to reduce the barriers of renewable energy penetration, the full potential of renewable energy deployment in households is still not realized due to the behavioral and other barriers. One of the most important factors in the adoption of renewable energy technologies in households is the decision-making to implement renewables; therefore, the behavioral economics insights should be taken into account during the analysis of renewable energy acceptance by households. The paper provides a systematic literature review on renewable energy use in households by analyzing policies and measures, which could increase the use of renewable energy in households by overcoming the major barriers. The dynamics of renewable energy consumption in EU households was performed by applying Eurostat data, and the empirical case study was conducted in Lithuania to understand the main reasons of renewable energy acceptance by the household. Even though the use of renewable energy sources has increased significantly in the EU member states during the recent years, the study has found the following most common barriers that the traditional policies are unable to overcome: (1) high upfront cost and long pay-back period, (2) a lack of information and knowledge, (3) low priority of environmental concern, (4) resistance to change; human habits. The case study shows that the majority of Lithuanian households would like to use renewable energy technologies in their homes, but they encounter financial difficulties and lack of infrastructure. The policy recommendations were developed based on the results of the conducted study.

The European Commission introduced a package of measures to accelerate the shift to low-carbon energy transition in Europe. In 2014, EU member states agreed to reduce greenhouse gas emissions by at least 40% by 2030 compared to 1990 levels. The binding greenhouse gas emission targets for Member States from 2021 to 2030 for the transport, buildings, agriculture, waste, and land-use and forestry sectors were established. EU Member States should decide on their own how to meet the agreed upon 2030 target and implement climate-change-mitigation measures. All EU MSs have committed to prepare national energy and climate plans based on regulation on the governance of the energy union and climate action (EU)2018/1999, agreed as part of the Clean Energy for All Europeans package approved in 2019. The national plans outline how the EU Member States intend to implement the GHG reduction target by increasing their in energy efficiency, use of renewables, greenhouse-gas-emission reductions, interconnections, and research and innovation. This paper analyzes the energy and climate plans of the Baltic States and systematizes the main climate-change-mitigation policies in the energy sector targeting the household sector. The background of energy and climate planning is provided from a theoretical point of view, encompassing regional, local, and national energy and climate plans. The diffusion levels of renewables in the Baltic States were determined and the energy-climatic-friendly policies followed, by them, they were identified.