Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence

Gillingham, Kenneth; Palmer, Karen

doi:10.1093/reep/ret021

Cited by 481 publications

(283 citation statements)

References 73 publications

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“…Moreover, CBE initiatives are said to lower information costs related with energy-efficiency technologies and conservation behaviors and therefore contribute to overcome some of the informational and behavioral barriers to energy efficiency constituting the so-called 'energy efficiency gap' (Gillingham and Palmer, 2014). 2 Indeed, CBE projects may raise their members' awareness about sustainable energy practices through communication channels and information provision.…”

Section: Related Workmentioning

confidence: 99%

Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders

Bauwens

Eyre

2017

Ecological Economics

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Abstract:Community-based energy organizations have been said to influence their members' energy-related behavior by activating social norms and by providing trustworthy information about sustainable energy investments and behaviors. However, little is known yet about members' actual energy use and how it differs from that of individuals who do not participate in such projects. In particular, selection effects are likely to arise, i.e. community-based energy projects may attract people that are different from the underlying population in terms of energy use. This article empirically addresses the question of the selection into community-based energy projects in terms of energy use, focusing on the case of renewable energy cooperatives. Based on quantitative data from an original survey conducted with one renewable energy cooperative in Flanders and using probit regression analyses, it contrasts a sample of cooperative members with an appropriate comparison group in terms of electricity usage. The results show that electricity consumption is positively related with cooperative membership, suggesting that high use consumers have greater incentives to join a communitybased organization which provides assistance and advice on the adoption of green technologies and energy efficiency measures. These findings contribute to an understanding of the relationship between community-based governance and sustainable energy practices.

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Section: Related Workmentioning

confidence: 99%

Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders

Bauwens

Eyre

2017

Ecological Economics

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“…heuristics, limited attention) and the need to address them with (innovative) policy interventions (e.g. Bager and Mundaca 2017;Frederiks et al 2015;Gillingham and Palmer 2014;Pichert and Katsikopoulos 2008). Sonnenschein et al (2018) argue that, in addition to performance standards and carbon pricing, further (mixes of) policy interventions that address behavioral anomalies should be studied (e.g., labelling programs, green defaults).…”

Section: Behavioral Policiesmentioning

confidence: 99%

Demand-side approaches for limiting global warming to 1.5 °C

Mundaca

Ürge-Vorsatz²,

Wilson

2018

Energy Efficiency

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The Paris Climate Agreement defined an ambition of limiting global warming to 1.5°C above preindustrial levels. This has triggered research on stringent emission reduction targets and corresponding mitigation pathways across energy economy and societal systems. Driven by methodological considerations, supply side and carbon dioxide removal options feature prominently in the emerging pathway literature, while much less attention has been given to the role of demand-side approaches. This special issue addresses this gap, and aims to broaden and strengthen the knowledge base in this key research and policy area. This editorial paper synthesizes the special issue's contributions horizontally through three shared themes we identify: policy interventions, demand-side measures, and methodological approaches. The review of articles is supplemented by insights from other relevant literature. Overall, our paper underlines that stringent demand-side policy portfolios are required to drive the pace and direction of deep decarbonization pathways and keep the 1.5°C target within reach. It confirms that insufficient attention has been paid to demand-side measures, which are found to be inextricably linked to supply-side decarbonization and able to complement supply-side measures. The paper also shows that there is an abundance of demand-side measures to limit warming to 1.5°C, but it warns that not all of these options are Bseen^or captured by current quantitative tools or progress indicators, and some remain insufficiently represented in the current policy discourse. Based on the set of papers presented in the special issue, we conclude that demand-side mitigation in line with the 1.5°C goal is possible; however, it remains enormously challenging and dependent on both innovative technologies and policies, and behavioral change. Limiting warming to 1.5°C requires, more than ever, a plurality of methods and integrated behavioral and technology approaches to better support policymaking and resulting policy interventions.

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“…Energy efficiency has been described as a natural trend in development (Duro and Padilla, 2006;Stern, 2004;van Benthem, 2015), a cost-effective way to reduce emissions (Allcott and Greenstone, 2012;Gillingham and Palmer, 2014), and a factor helping with the technical feasibility of renewable power and electrification . But efficiency and electrification have their limits.…”

Section: Getting the Ambition Right: The Long-term Target Needs To Drmentioning

confidence: 99%

Climate Policies and Nationally Determined Contributions: Reconciling the Needed Ambition with the Political Economy

Vogt-Schilb

Hallegatte

2017

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Countries have pledged to stabilize global warming at a 1.5 to 2°C increase. Either target requires reaching net zero emissions before the end of the century, which implies a major transformation of the economic system. This paper reviews the literature on how policymakers can design climate policies and their Nationally Determined Contributions (NDCs) to reach zero-net emissions before the end of the century in a socially and politically-acceptable manner. To get the ambition right, policymakers can use sectoral roadmaps with targets and indicators that track progress towards zero emissions (e.g. regarding renewable power or reforestation). Indeed, monitoring economy-wide emissions reductions alone would not ensure that short-term action contributes meaningfully to the long-term decarbonization goal. To get the political economy right, climate policies can be designed so that they contribute to nonclimate objectives and create coalitions of supporters. For instance, revenues from carbon taxes can fund social assistance and infrastructure investment, while reducing tax evasion and informality. To minimize social and economic disruptions and avoid stranded assets, policymakers can start with a low carbon price level and use complementary policies. Designed at the sector level, complementary policies such as performance standards or feebates for cars, building norms, or moratoriums on new coal power plants can be negotiated in partnership with local stakeholders and trigger a transition to zero carbon without creating disruptive stranded assets.

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Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence

Cited by 481 publications

References 73 publications

Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders

Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders

Demand-side approaches for limiting global warming to 1.5 °C

Climate Policies and Nationally Determined Contributions: Reconciling the Needed Ambition with the Political Economy

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