2.3. Designing Energy efficiency Policies

• Optimising Energy in supply

  • CHP (Combined Heat and Power)

  • Minimising refinery losses, grid losses

• Optimising Energy in demand

  • Sectors:

    • Buildings

    • industry

    • transport

  • Products: Eco-desigm

  • Energy services (combination of energy and technology)

• Reducing demand for energy services

  • Sufficiency

  • De-growth

• Top down: Options with largest saving potential

• Bottom up: Remove hinderancees against savings in al fields

• Information barriers

• Actor barriers: Investor-user, tenant-lessor dilemma

• Financing barriers: High investment costs, risk surcharge at banks; transaction costs

• Long project durations

• Evaluation: Uncertainty about results -> Discounting

• Ownership barriers: No person responsible for energy management, not part of thecore business, only low energy costs Explain tenant-lessor dilemma

• Legal barriers (e.g. budget law)

• Consumer behavior: four-wheel drive, wastefulness as a lifestyle

As increased effiency is often associated with cost savings for consumer, this leads to more intensive use of product or/and purchase of additional products of the same type and/or consumes using freed-up funds for other energy-consuming products and services

• Where increased efficiency leads to cost reduction and the tendency to consume more of that good or servic

• Classic examples–the Jevons Paradox and the comfort factor

Savings from energy efficiency enable more income to be spent on other products and services.

• Increased efficiency improves economic productivity and drives growth, increasing consumption overall

• Short and long term effects differ