[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v121y2017icp599-605.html
   My bibliography  Save this article

Overestimation of savings in energy efficiency obligation schemes

Author

Listed:
  • Moser, Simon
Abstract
In energy efficiency obligation schemes, energy savings are accredited for implementing energy efficiency measures. Individual measures need to add up to the cumulative savings target. With regard to the savings accredited in energy efficiency obligation schemes that existed when the EU’s Energy Efficiency Directive entered into force, economic literature attests this policy instrument to effectively deliver additional savings at low costs. This paper relativizes these optimistic results and shows that accredited energy savings are likely to be significantly overestimated compared to the real savings achieved in course of the scheme. First, bargaining processes increase accredited savings per measure. These include bargaining on the volume of the savings target, standardised saving values, discount rates, and the lifetimes of measures. Second, arbitrary methods of measurement are an integrated element of obligation schemes to minimise excessive administrative costs. However, it is shown that arbitrary methods of measurement incentivize overestimation of real savings. Both aspects imply that real savings are lower than accredited savings, querying the policy instrument’s actual effectiveness and efficiency.

Suggested Citation

  • Moser, Simon, 2017. "Overestimation of savings in energy efficiency obligation schemes," Energy, Elsevier, vol. 121(C), pages 599-605.
    • Handle: RePEc:eee:energy:v:121:y:2017:i:c:p:599-605
    DOI: 10.1016/j.energy.2017.01.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217300348
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.01.034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mundaca, Luis & Neij, Lena, 2009. "A multi-criteria evaluation framework for tradable white certificate schemes," Energy Policy, Elsevier, vol. 37(11), pages 4557-4573, November.
    2. Filipović, Sanja & Verbič, Miroslav & Radovanović, Mirjana, 2015. "Determinants of energy intensity in the European Union: A panel data analysis," Energy, Elsevier, vol. 92(P3), pages 547-555.
    3. Hake, Jürgen-Friedrich & Fischer, Wolfgang & Venghaus, Sandra & Weckenbrock, Christoph, 2015. "The German Energiewende – History and status quo," Energy, Elsevier, vol. 92(P3), pages 532-546.
    4. Moser, Simon, 2013. "Poor energy poor: Energy saving obligations, distributional effects, and the malfunction of the priority group," Energy Policy, Elsevier, vol. 61(C), pages 1003-1010.
    5. Sousa, José Luís & Martins, António Gomes & Jorge, Humberto, 2013. "Dealing with the paradox of energy efficiency promotion by electric utilities," Energy, Elsevier, vol. 57(C), pages 251-258.
    6. Louis-Gaëtan Giraudet & Luc Bodineau & Dominique Finon, 2011. "The costs and benefits of white certificates schemes," Working Papers hal-00866420, HAL.
    7. Cohen, Jed J. & Reichl, Johannes & Schmidthaler, Michael, 2014. "Re-focussing research efforts on the public acceptance of energy infrastructure: A critical review," Energy, Elsevier, vol. 76(C), pages 4-9.
    8. Mundaca, Luis, 2007. "Transaction costs of Tradable White Certificate schemes: The Energy Efficiency Commitment as case study," Energy Policy, Elsevier, vol. 35(8), pages 4340-4354, August.
    9. Clemens Rohde & Jan Rosenow & Nick Eyre & Louis-Gaëtan Giraudet, 2015. "Energy saving obligations—cutting the Gordian Knot of leverage?," Post-Print hal-01016112, HAL.
    10. Bertoldi, Paolo & Rezessy, Silvia & Lees, Eoin & Baudry, Paul & Jeandel, Alexandre & Labanca, Nicola, 2010. "Energy supplier obligations and white certificate schemes: Comparative analysis of experiences in the European Union," Energy Policy, Elsevier, vol. 38(3), pages 1455-1469, March.
    11. Beccali, Marco & Bonomolo, Marina & Ciulla, Giuseppina & Galatioto, Alessandra & Lo Brano, Valerio, 2015. "Improvement of energy efficiency and quality of street lighting in South Italy as an action of Sustainable Energy Action Plans. The case study of Comiso (RG)," Energy, Elsevier, vol. 92(P3), pages 394-408.
    12. Rosenow, Jan, 2012. "Energy savings obligations in the UK—A history of change," Energy Policy, Elsevier, vol. 49(C), pages 373-382.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andra Blumberga & Reinis Āzis & Dāvis Reinbergs & Ieva Pakere & Dagnija Blumberga, 2021. "The Bright and Dark Sides of Energy Efficiency Obligation Scheme: The Case of Latvia," Energies, MDPI, vol. 14(15), pages 1-20, July.
    2. Malinauskaite, J. & Jouhara, H. & Ahmad, L. & Milani, M. & Montorsi, L. & Venturelli, M., 2019. "Energy efficiency in industry: EU and national policies in Italy and the UK," Energy, Elsevier, vol. 172(C), pages 255-269.
    3. Malinauskaite, Jurgita & Jouhara, Hussam & Egilegor, Bakartxo & Al-Mansour, Fouad & Ahmad, Lujean & Pusnik, Matevz, 2020. "Energy efficiency in the industrial sector in the EU, Slovenia, and Spain," Energy, Elsevier, vol. 208(C).
    4. Schubert, Torben & Breitschopf, Barbara & Plötz, Patrick, 2021. "Energy efficiency and the direct and indirect effects of energy audits and implementation support programmes in Germany," Energy Policy, Elsevier, vol. 157(C).
    5. Guibentif, Thomas M.M. & Patel, Martin K. & Yilmaz, Selin, 2021. "Using energy saving deficit distributions to assess calculated, deemed and metered electricity savings estimations," Applied Energy, Elsevier, vol. 304(C).
    6. Francesco Calise & Maria Vicidomini & Mário Costa & Qiuwang Wang & Poul Alberg Østergaard & Neven Duić, 2019. "Toward an Efficient and Sustainable Use of Energy in Industries and Cities," Energies, MDPI, vol. 12(16), pages 1-28, August.
    7. Gkonis, Nikolaos & Arsenopoulos, Apostolos & Stamatiou, Athina & Doukas, Haris, 2020. "Multi-perspective design of energy efficiency policies under the framework of national energy and climate action plans," Energy Policy, Elsevier, vol. 140(C).
    8. Paolo Bertoldi & Marina Economidou & Valentina Palermo & Benigna Boza‐Kiss & Valeria Todeschi, 2021. "How to finance energy renovation of residential buildings: Review of current and emerging financing instruments in the EU," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(1), January.
    9. Francesco Calise & Mário Costa & Qiuwang Wang & Xiliang Zhang & Neven Duić, 2018. "Recent Advances in the Analysis of Sustainable Energy Systems," Energies, MDPI, vol. 11(10), pages 1-30, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rosenow, Jan & Bayer, Edith, 2017. "Costs and benefits of Energy Efficiency Obligations: A review of European programmes," Energy Policy, Elsevier, vol. 107(C), pages 53-62.
    2. Louis-Gaetan Giraudet and Dominique Finon, 2015. "European experiences with white certifirecate obligations: A critical review of existing evaluations," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    3. Louis-Gaëtan Giraudet & D. Finon, 2014. "European experiences with white certificate obligations: A critical review of existing evaluations," Working Papers hal-01016110, HAL.
    4. Anil Markandya & Xavier Labandeira & Ana Ramos, 2013. "Policy Instruments to Foster Energy Efficiency," Working Papers 01-2014, Economics for Energy.
    5. Afshari, Afshin & Friedrich, Luiz, 2016. "A proposal to introduce tradable energy savings certificates in the emirate of Abu Dhabi," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1342-1351.
    6. Rosenow, Jan & Platt, Reg & Flanagan, Brooke, 2013. "Fuel poverty and energy efficiency obligations – A critical assessment of the supplier obligation in the UK," Energy Policy, Elsevier, vol. 62(C), pages 1194-1203.
    7. Andra Blumberga & Reinis Āzis & Dāvis Reinbergs & Ieva Pakere & Dagnija Blumberga, 2021. "The Bright and Dark Sides of Energy Efficiency Obligation Scheme: The Case of Latvia," Energies, MDPI, vol. 14(15), pages 1-20, July.
    8. Moser, Simon, 2013. "Poor energy poor: Energy saving obligations, distributional effects, and the malfunction of the priority group," Energy Policy, Elsevier, vol. 61(C), pages 1003-1010.
    9. Franzò, Simone & Frattini, Federico & Cagno, Enrico & Trianni, Andrea, 2019. "A multi-stakeholder analysis of the economic efficiency of industrial energy efficiency policies: Empirical evidence from ten years of the Italian White Certificate Scheme," Applied Energy, Elsevier, vol. 240(C), pages 424-435.
    10. Abrardi, Laura & Cambini, Carlo, 2015. "Tariff regulation with energy efficiency goals," Energy Economics, Elsevier, vol. 49(C), pages 122-131.
    11. Liping Liao & Chukun Huang & Minzhe Du, 2022. "The Effect of Energy Quota Trading on Energy Saving in China: Insight from a Quasi-Natural Experiment," Energies, MDPI, vol. 15(22), pages 1-17, November.
    12. Fischer, W. & Hake, J.-Fr. & Kuckshinrichs, W. & Schröder, T. & Venghaus, S., 2016. "German energy policy and the way to sustainability: Five controversial issues in the debate on the “Energiewende”," Energy, Elsevier, vol. 115(P3), pages 1580-1591.
    13. Du, Minzhe & Wu, Fenger & Ye, Danfeng & Zhao, Yating & Liao, Liping, 2023. "Exploring the effects of energy quota trading policy on carbon emission efficiency: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 124(C).
    14. Galvin, Ray, 2018. "‘Them and us’: Regional-national power-plays in the German energy transformation: A case study in Lower Franconia," Energy Policy, Elsevier, vol. 113(C), pages 269-277.
    15. Alberto Gago & Michael Hanemann & Xavier Labandeira & Ana Ramos, 2013. "Climate change, buildings and energy prices," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 19, pages 434-452, Edward Elgar Publishing.
    16. repec:hal:ciredw:hal-01016112 is not listed on IDEAS
    17. Apajalahti, Eeva-Lotta & Lovio, Raimo & Heiskanen, Eva, 2015. "From demand side management (DSM) to energy efficiency services: A Finnish case study," Energy Policy, Elsevier, vol. 81(C), pages 76-85.
    18. Kerr, Niall & Gouldson, Andy & Barrett, John, 2017. "The rationale for energy efficiency policy: Assessing the recognition of the multiple benefits of energy efficiency retrofit policy," Energy Policy, Elsevier, vol. 106(C), pages 212-221.
    19. Ringel, Marc & Schlomann, Barbara & Krail, Michael & Rohde, Clemens, 2016. "Towards a green economy in Germany? The role of energy efficiency policies," Applied Energy, Elsevier, vol. 179(C), pages 1293-1303.
    20. José L. Sousa & António G. Martins, 2018. "Portuguese Plan for Promoting Efficiency of Electricity End-Use: Policy, Methodology and Consumer Participation," Energies, MDPI, vol. 11(5), pages 1-19, May.
    21. Vlasis Oikonomou & Alexandros Flamos & Niki-Artemis Spyridaki & Wytze Gaast & Ariane Dominicis & Nicolas Chung, 2012. "White certificates and domestic offset schemes: possible synergies," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(2), pages 187-205, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:121:y:2017:i:c:p:599-605. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.