A model is developed that simulates nationwide energy consumption of the residential sector by considering the diversity of household and building types. Since this model can simulate the energy consumption for each household and building category by dynamic energy use based on the schedule of the occupants' activities and a heating and cooling load calculation model, various kinds of energy-saving policies can be evaluated with considerable accuracy. In addition, the average energy efficiency of major electric appliances used in the residential sector and the percentages of housing insulation levels of existing houses is predicted by the "stock transition model." In this paper, energy consumption and CO(2) emissions in the Japanese residential sector until 2025 are predicted. For example, as a business - as-usual (BAU) case, CO(2) emissions will be reduced by 7% from the 1990 level. Also evaluated are mitigation measures such as the energy efficiency standard for home electric appliances, thermal insulation code, reduction of standby power, high-efficiency water heaters, energy-efficient behavior of occupants, and dissemination of photovoltaic panels. (C) 2009 Elsevier Ltd. All rights reserved.