scholarly journals Unintended Effects of Energy Efficiency Policy: Lessons Learned in the Residential Sector

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7792
Author(s):  
Andra Blumberga ◽  
Gatis Bazbauers ◽  
Selina Vancane ◽  
Ivars Ijabs ◽  
Jurijs Nikisins ◽  
...  

The European Union has set an ambitious goal to tackle climate change, and energy efficiency in the residential sector is among the measures required to close the gap between targeted and actual greenhouse gas emissions. While different policy tools have been applied, the diffusion rate of these measures remains low. A system dynamics simulation model of the residential sector was developed to assess the advantages and drawbacks of energy efficiency policy in the multi-family building sector based on experience accumulated over the last twelve years in Latvia. The model was validated in expert group model building sessions and with historical trends. Simulating the model, a hypothesis was tested that supported the idea that seemingly positive policy tools set the stage for a series of unintended adverse effects due to the complex interactions between different system components. The common assumption that information and financial support should result in significant energy efficiency diffusion proved to be wrong. It instead results in unintended long-term consequences that hamper national energy efficiency goals. The model carried out an analysis and brought insights for improving the effectiveness of government energy efficiency policy. It is concluded that models that broadly describe complex systems are needed to identify effective policies and foresee unintended side effects.

2020 ◽  
pp. 0958305X2094388
Author(s):  
Bishwa S Koirala ◽  
Alok K Bohara

This study estimates the effects of energy efficiency policy in the residential sector using panel data of 48 contiguous states starting from 1970 to 2017. To avoid any unobserved heterogeneity and facilitate efficiency in estimation, this study employs a Dynamic Panel Data model with a two-step Generalized Method of Moments technique. The results suggest that energy efficiency policy for the residential sector has saved about 8.6 percent in energy consumption, which is about 22 percent of the total stated saving, leaving an energy efficiency gap of 1.5771 quadrillion Btu. Consistent with previous estimations, this study finds that theoretical saving amounts overestimate energy efficiency output and overinflate the increase in potential energy efficiency by about 32 percent. Since energy efficiency policy has failed to achieve the stated amount of saving in the residential sector, households have no incentive to adopt the energy efficiency policy, which has created an unusual gap in energy efficiency.


2021 ◽  
Vol 25 (1) ◽  
pp. 42-57
Author(s):  
Kristaps Locmelis ◽  
Andra Blumberga ◽  
Uldis Bariss ◽  
Dagnija Blumberga ◽  
Lauma Balode

Abstract Energy efficiency policy has been one of the European Union top priorities for decades and will continue to play a vital role in the next 10 years with the introduction of The Clean energy for all Europeans. Likewise, in Latvia energy efficiency has been given high priority; however, the energy efficiency targets for industry has lacked ambitions. This research focuses on evaluating the Latvian industrial energy efficiency policy using top-down approach and benchmarking energy intensity of Latvian industry to the average of the European Union’s. Results confirm that on average Latvian industry consumes 2.6 times more energy to produce the same amount of value added compared to the average in the European Union; however, every saved energy unit in Latvia would save twice less CO2 emissions considering already largely decarbonized energy mix. In the spotlights of the Green Deal proposed by the European Commission, much higher contribution in terms of CO2 reduction and energy efficiency will be expected from the industry. Nevertheless, energy efficiency targets for Latvian industry should be sector-specific, separately addressing CO2 intensive sectors, and non-intensive CO2 sectors with low added value.


Energies ◽  
2019 ◽  
Vol 12 (8) ◽  
pp. 1537 ◽  
Author(s):  
Ringel ◽  
Laidi ◽  
Djenouri

From both global and local perspectives, there are strong reasons to promote energy efficiency. These reasons have prompted leaders in the European Union (EU) and countries of the Middle East and North Africa (MENA) to adopt policies to move their citizenry toward more efficient energy consumption. Energy efficiency policy is typically framed at the national, or transnational level. Policy makers then aim to incentivize microeconomic actors to align their decisions with macroeconomic policy. We suggest another path towards greater energy efficiency: Highlighting individual benefits at microeconomic level. By simulating lighting, heating and cooling operations in a model single-family home equipped with modest automation, we show that individual actors can be led to pursue energy efficiency out of enlightened self-interest. We apply simple-to-use, easily, scalable impact indicators that can be made available to homeowners and serve as intrinsic economic, environmental and social motivators for pursuing energy efficiency. The indicators reveal tangible homeowner benefits realizable under both the market-based pricing structure for energy in Germany and the state-subsidized pricing structure in Algeria. Benefits accrue under both the continental climate regime of Germany and the Mediterranean regime of Algeria, notably in the case that cooling energy needs are considered. Our findings show that smart home technology provides an attractive path for advancing energy efficiency goals. The indicators we assemble can help policy makers both to promote tangible benefits of energy efficiency to individual homeowners, and to identify those investments of public funds that best support individual pursuit of national and transnational energy goals.


Energies ◽  
2019 ◽  
Vol 12 (6) ◽  
pp. 1107 ◽  
Author(s):  
Paolo Zangheri ◽  
Marina Economidou ◽  
Nicola Labanca

Following the adoption of the Energy Efficiency Directive (EED) in 2012, the Member States of the European Union implemented various policies and measures to meet the Directive's requirements, including national energy efficiency targets for 2020. The progress made at national level is tracked through the Annual Reports provided by Member States to the Commission in accordance with the EED Article 24. To provide valuable insights of the actions taken by Member States towards increasing energy efficiency in various sectors of their economies, this paper reviews the assessment of the Annual Reports (AR) submitted since 2013 – the year in which the first reports were due – until the latest Annual Reports of 2018. Notably, the implementation status of key EED provisions such as Article 5 on the exemplary role of public bodies’ buildings and Article 7 on Energy Efficiency Obligation Schemes (EEOS) is discussed, providing a historical view of the progress made from the inception of the various actions until now. The need of more efforts, in particular with the Article 5 implementation, is identified. The national contributions towards the EU 2020 target are also discussed, including an analysis of the latest energy consumption trends and reasons for which energy consumption remained stable or increased, as given by Member States in their reports. Lessons learned from the EED experience so far are drawn that provide valuable input for the successful implementation of the future requirements under the new Energy Union Governance.


Author(s):  
Savaş Çevik ◽  
M. Mustafa Erdoğdu ◽  
Fatma Turna

This chapter deals with the instruments and policies to achieve energy efficiency in some of the European Union (EU) member states. The main aim of the study is to search for any efficient combination of policy instruments in the EU. The analysis is based on a unique database, derived out of the MURE project, related to energy efficiency policy measures in 28 EU countries and Norway. The study first describes and evaluates the main purposes and instruments of energy efficiency policies. Then, it classifies the measures applied to promote energy efficiency in sample countries by sectors and examines the impact level of different policy packages on energy efficiency.


2021 ◽  
Vol 30 (4) ◽  
pp. 250-256
Author(s):  
Sebastian Rhein ◽  
Katharina Friederike Sträter

Several EU countries discuss introducing deposit systems for single-use bottles to mitigate pollution. However, as an analysis of the German experiences indicates, the introduction of a deposit on single-use beverage containers might unintendedly compromise the endeavor to implement a circular economy. Such unintended effects need to be considered to enable the implementation of a circular economy that prioritizes reduction and reuse compared to recycling.High levels of environmental pollution and low recycling rates have triggered a debate on deposit return systems for single-use beverage containers (BCs) within the European Union. In 2003, Germany statutorily implemented a deposit for single-use BCs, which operates alongside a historically grown deposit system for multi-use bottles. The long-standing German practice can be used as a source of relevant experiences. These experiences show that the introduction of a single-use deposit is a double-edged sword: on the one hand, it caused an increase in return and recycling rates of single-use BCs. On the other hand, there were unintended effects on the long-standing multi-use system and, thus, on the endeavor to implement a circular economy where reduction and reuse are prioritized rather than recycling. It seems that the introduction of a single-use deposit system promotes a narrow mode of thinking and a focus on recycling, which hinders the revitalization of multi-use BC systems. The EU’s debate on single-use deposit lacks critical consideration of such unintended effects. The discussion of the German experiences might help to avoid unintended effects that hinder the establishment of a circular economy.


2018 ◽  
pp. 113-119
Author(s):  
Gennady Ya. Vagin ◽  
Eugene B. Solntsev ◽  
Oleg Yu. Malafeev

The article analyses critera applying to the choice of energy efficient high quality light sources and luminaires, which are used in Russian domestic and international practice. It is found that national standards GOST P 54993–2012 and GOST P 54992– 2012 contain outdated criteria for determining indices and classes of energy efficiency of light sources and luminaires. They are taken from the 1998 EU Directive #98/11/EU “Electric lamps”, in which LED light sources and discharge lamps of high intensity were not included. A new Regulation of the European Union #874/2012/EU on energy labelling of electric lamps and luminaires, in which these light sources are taken into consideration, contains a new technique of determining classes of energy efficiency and new, higher classes are added. The article has carried out a comparison of calculations of the energy efficiency classes in accordance with GOST P 54993 and with Regulation #874/2012/EU, and it is found out that a calculation using GOST P 54993 gives underrated energy efficiency classes. This can lead to interdiction of export for certain light sources and luminaires, can discredit Russian domestic manufacturer light sources and does not correspond to the rules of the World Trade Organization (WTO).


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