Departing from the concept of rational use of energy, the paper outlines the microeconomics of end-use energy saving as a result of frugality or efficiency measures. Frugality refers to the behaviour that is aimed at energy conservation, and with efficiency we refer to the technical ratio between energy input and output services that can be modified with technical improvements (e.g. technology substitution). Changing behaviour from one side and technology from the other are key issues for public energy policy. In this paper, we attempt to identify the effects of parameters that determine energy saving behaviour with the use of the microeconomic theory. The role of these parameters is crucial and can determine the outcome of energy efficiency policies; therefore policymakers should properly address them when designing policies.

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Climate policy, Instruments evaluation, Integration options, Policy interaction,

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PurposeEvaluation of energy and climate policy interactions is a complex issue, whereas stakeholders' preferences incorporation has not been addressed systematically. The purpose of this paper is to present an integrated weighting methodology that has been developed in order to incorporate weighting preferences into an ex ante evaluation of climate and energy policy interactions.Design/methodology/approachA multi‐criteria analysis (MCA) weighting methodology which combines pair‐wise comparisons and ratio importance weighting methods has been elaborated. It initially introduces the users to the evaluation process through a warming up holistic approach for an initial rank of the criteria and then facilitates them to express their ratio relative importance in pair‐wise comparisons of criteria by providing them an interactive mean with verbal, numerical and visual representation of their preferences. Moreover, it provides a ranking consistency test where users can see the degree of (in)consistency of their preferences.FindingsStakeholders and experts in the energy policy field who tested the methodology stated their approval and satisfaction for the combination of both ranking and pair‐wise comparison techniques, since it allows the gradual approach to the evaluation problem. In addition, main difficulties in MCA weights elicitation processes were overcome.Research limitations/implicationsThe methodology is tested by a small sample of stakeholders, whereas a larger sample, a broader range of stakeholders and applications on different climate policy evaluation cases merit further research.Originality/valueThe novel aspect of the developed methodology consists of the combination of ranking and pair‐wise comparison techniques for the elicitation of stakeholders' preferences.

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Increased efficiency of energy demand is generally recognized as a very cost-effective strategy to reduce energy requirements and the related environmental impacts (e.g. the greenhouse effect). In order to improve energy efficiency the use of innovative market mechanisms, such as the White Certificates (WhC), has been proposed. The basic idea underlying this policy instrument is that specific energy saving targets are set for energy suppliers or energy distributors. These requirements must be fulfilled in a predefined time frame. The focus of this paper is on the effect on energy efficiency improvement, on the behavior of the end consumers and the market of energy efficiency measures. Furthermore, we study the possible effects of WhC in The Netherlands by means of a theoretical analysis and an empirical bottom-up model. We compare concrete energy efficient technologies in terms of cost-effectiveness and energy efficiency improvement. In combination with existing Dutch policies for energy efficiency improvement in the built environment, the contribution of this innovative scheme could enhance the accomplishment of energy efficiency targets. In this paper, two packages of energy saving measures of a WhC scheme are studied for Dutch households. The costs of these technologies are estimated through the use of different discount rates, which imply overcoming of the market barriers through the use of the WhC. A scheme that includes all available technologies as flexible options appears as a realistic solution and can generate cost effectively up to 180 PJ primary energy savings and 4550 Mh cumulative net savings in the year 2020, at a discount rate of 5%, under the precondition that the policy and administrative costs can be kept low. r

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