Government regulation as an impetus for innovation: Evidence from energy performance regulation in the Dutch residential building sector

The recent implementation of energy performance policy as a way to tackle energy consumption in the building sector in Europe draws attention to the effect it has on the development and diffusion of energy-saving innovations. According to innovation system literature, government regulation through norms and standards is one of the factors stimulating innovation. This paper concentrates on the role of stricter government regulation as an incentive to innovation in the Dutch residential building sector. Innovation in this sector is predominantly a process of applying incremental modifications to comply with new and stricter government regulations and standards. Energy performance policy in its current shape will therefore not contribute to the diffusion of really new innovation in energy techniques for residential buildings in the Netherlands. If diffusion of really new innovation is an explicit aim of energy performance policy then the European wide introduction of this scheme needs reconsideration.     

Serbian gas sector in the spotlight of oil and gas agreement with Russia

The Russian natural gas industry is the world's largest producer and transporter of natural gas. This paper identifies the benefits for Serbia as transient country to European Union for Russian natural gas through South Stream gas-line in the current political context of implementation of gas agreement. On the other hand, according to the Agreement on Stabilization and Integration to European Union, Serbia is obligatory to implement reforms in energy sector and its energy policy must be in accordance with the European Union policy. Republic of Serbia has produced and consumed natural gas domestically since 1952, but has always been net importer. Strategy of Energy Development in Serbia and especially, National Action Plan for the gasification on the territory of Republic of Serbia dedicated special attention to gas economy development in respect with expected contribution in efficient energy use and environmental policy protection in the country.     

The effectiveness of policy instruments in promoting bioenergy

Bioenergy could make a significant contribution in reducing greenhouse gas emissions in Europe and is unique in its potential to service all three of the major energy demand sectors for heat, electricity and transport fuels. Consequently during the last two decades many different initiatives have been launched and policy instruments employed in different countries to develop the bioenergy sector, some of which have been more successful than others.This paper analyses the relationship between the growth of bioenergy in four European states and national energy policy. The policy instruments used are critically evaluated alongside the evidence base of bioenergy capacity and output achieved. The possible reasons for success or failure of different instruments and any unexpected impacts are discussed and some general conclusions drawn.     

Public energy performance policy and the effect on diffusion of solar thermal systems in buildings: A Dutch experience

Energy performance policy is an important element in the European Energy Performance of Buildings Directive (Directive 2002/91/EC—in short: EPBD, published 4 January 2003), which the European Commission is now urging all European member states to introduce for the building sector by 2006. One of the expected benefits of energy performance policy is that it can help to introduce innovations such as solar thermal systems. However, few studies have analysed this so far. This paper describes the extent to which the penetration of solar thermal systems in the residential building sector is directly related to energy performance policy in the Netherlands. The concept of energy performance policy is explained and the effects of using energy performance policy for several years in the Netherlands are described, through the results of an empirical study. Statistical analysis appears to show no association between Dutch energy performance policy and the application of solar thermal systems in the domestic sector.     

Renewable energy in the heating sector in Austria with particular reference to the region of Upper Austria

The heating sector has been neglected in energy policies for quite some time, especially on the European level. Only recently, with the implementation of the European directive 2009/28/EC the sector has gained higher attention. The objective of this paper is to provide an overview of the heat market in Austria and of the current status and future prospects of renewable energy in the heat sector (RES-H) up to 2030. Despite the growing energy demand, the share of renewable energy in the total energy demand for space heating and hot water increased from about 20% in 1970 to about 34% in 2008. This is mainly due to ambitious RES-H support instruments and regional policy targets. For example, the government of the region of Upper Austria has implemented a target of 100% RES-H share in the space heating and hot water sector until the year 2030. However, the National Renewable Energy Action Plan for 2020 foresees only moderate growth rates for RES-H compared to recent market growth and scenarios in literature. Due to the ambitious targets and support schemes of regional governments it seems likely that RES-H deployment could growstronger than stated in the action plan.     

Can the environmental benefits of biomass support agriculture?—The case of cereals for electricity and bioethanol production in Northern Spain

Recent policy documents, such as the EC Communication on an Energy Policy for Europe (January 2007) make emphasis on the opportunities that energy applications can offer certain agricultural commodities, especially in the framework of a progressive dismantling of the Common Agricultural Policy. This paper analyses whether this can be true for wheat and barley farmers, using the real example of a straw-based power plant in Northern Spain and a theoretical factory for bioethanol production fed with cereal grain. The outcomes of such an exercise, in which their relative environmental benefits vis-à-vis fossil fuel alternatives are worked out with the aid of a simplified life-cycle approach, show that the characteristics of the electricity and biomass markets, the baseline scenario and the fuel prices are crucial for the future of the sector.     

Energy service companies in European countries: Current status and a strategy to foster their development

Although the European Commission and the Member States of the European Union (EU)¹ have promoted a number of policy initiatives to foster the Energy Services Company (ESCO) industry, a recent survey of ESCO businesses in Europe has indicated that major differences exist in the development of the ESCO business among the various countries. In some countries a large number of ESCOs have been successfully operating for a number of years, while in other countries only a few ESCOs have recently started to operate. This difference could be explained by several factors, such as different levels of support offered to ESCOs by national and regional energy authorities, local market structures and rules, and variation in the definitions, roles and activities of ESCOs. This paper reviews and analyses the development and the current status of ESCO industries in the EU and the New Accession Countries. Based on the review and the analysis, a long-term strategy to foster the development of ESCOs in Europe is formulated. The strategic actions recommended build on successful experience in Europe and are proposed with an eye to existing and planned legislative measures, such as the proposed Energy Service Directive and the deployment of the Kyoto flexible mechanisms.     

Energy policy and standard for built environment in China

Trends in China's energy future will have considerable consequences for both China and the global environment. Though China's carbon emissions are low on a per capita basis, China is already ranked the world's second largest producer of carbon, behind only America. China's buildings sector currently accounts for 23% of China's total energy use and is projected to increase to one-third by 2010. Energy policy plays an important role in China's sustainable development. The purpose of this study is to provide a broad overview of energy efficiency issues in the built environment in China. This paper, firstly briefly, reviews the key national policies related to the built environment and demonstrates the government's environmental concern. Secondly, the authors introduce recent energy policies in the built environment. Energy efficiency and renewable energy in the built environment, which are the key issues of the national energy policy, have been reviewed. Discussion of the implementation of energy policy has been carried out.     

Consumers in the green electricity market in Finland

“Green” electricity, i.e. electricity produced from environmentally less harmful sources and marketed as such, has been available to Finnish households since 1998, but the demand for it has remained low. In this paper we discuss the barriers identified by consumers to purchasing green electricity and contrast these with the interpretation energy sector actors give to consumer passivity. The empirical material consists of thematic interviews. Energy policy actors often assume that consumers’ passivity signifies their lack of interest or low environmental consciousness. This results partly from the failure to differentiate between the roles of consumer and citizen. The interpretation the energy sector actors give to consumer passivity and the role they assign to consumers affect the direction of green electricity policy. We argue that consumers need more information on both the environmental impact of different electricity products and in particular about the electricity supply and electricity contracts in a liberalised electricity market if they are to become active in the market.     

An evaluation of errors in US energy forecasts: 1982–2003

Planners, policy-makers, and the private sector rely on energy forecasts to help make policy and investment decisions. In the US, the federal Department of Energy (through the Energy Information Administration and its predecessors) has conducted national forecasts of energy production and consumption for decades. This paper explores US energy forecasts in order to uncover potential systemic errors in US forecasting models. We apply an error decomposition technique to forecasts within each major energy sector (commercial, industrial, residential, and transportation) made during the period 1982 to 2003. We find that low errors for total energy consumption are concealing much larger sectoral errors that cancel each other out when aggregated. For example, 5-year forecasts made between 1982 and 1998 demonstrate a mean percentage error for total energy consumption of 0.1%. Yet, this hides the fact that the industrial sector was overestimated by an average of 5.9%, and the transportation sector was underestimated by an average of 4.5%. We also find no evidence that forecasts within each sector have improved over the two decades studied here.     

Energy efficiency in the residential sector: identification of promising policy instruments and private initiatives among selected European countries

Improving residential energy efficiency is widely recognised as one of the best strategies for reducing energy demand, combating climate change, and increasing security of energy supply. However, progress has been slow to date due to a number of market and behavioural barriers that have not been adequately addressed by energy efficiency policies and programmes. This study is based on updated findings of the European Futures for Energy Efficiency Project that responds to the EU Horizon 2020 Work Programme 2014–2015 theme ‘Secure, clean and efficient energy’. This article draws on five case studies from selected European countries—Finland, Italy, Hungary, Spain, and the UK—and evaluates recent energy efficiency developments in terms of indicators, private initiatives, and policy measures in the residential sector. Our analysis shows that the UK government has implemented a better range of policies, coupled with initiatives from the private sector, aimed at improving energy efficiency. However, its existing conditions appear to be more problematic than the other countries. On the other hand, the lack of effective and targeted policies in Finland resulted in increased energy consumption, while in Hungary, Spain and Italy some interesting initiatives, especially in terms of financial and fiscal incentives, have been found.     

On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry

The European Union Emission Trading Scheme (EU-ETS) represents the masterpiece that the EU adopted to achieve the Kyoto Protocol and “Europe 2020” strategy goals of reducing greenhouse gas (GHG). Although the EU-ETS is designed “in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner” and “without prejudice for the Treaty”, the system has become a concern issue for firms and industries over competitiveness in European and international markets in addition to carbon leakage.This paper analyses whether and to what extent the EU-ETS may harm competitiveness, by following a qualitative approach, and presenting the case of the Italian paper industry, included in the system as an energy-intensive sector. More specifically, first the paper identifies those key factors that provide a qualitative measure of the “competitiveness risk” related to the EU-ETS; then, those factors are used to examine the Italian paper industry and to assess the actual and potential risks affecting the sector. This analysis is of interest given the lack of similar studies on the Italian paper industry and represents a starting point to serve further studies and future policymaking in Italy and Europe.     

Liberalisation of the UK energy market: An opportunity for green energy

1998 is a year of considerable change and opportunity for the energy sector in the UK, with government policy reviews of generation, renewables, utility regulation and climate change. In addition, the UK electricity market and gas markets will be opened up to full competition. This could boost renewable energy and the formation of Energy Services Companies as environmentally-aware consumers become able to choose ‘green’ energy from more progressive suppliers. Friends of the Earth has researched the environmental performance of the main electricity suppliers in the UK and the potential for consumer pressure. However, competition must exist within a framework of government regulation and additional support mechanisms if environmental and social objectives for the energy sector are to be met     

Significance of the energy charter treaty

The Energy Charter Treaty and its associated Protocol on Energy Conservation is the first binding international law document which imposes obligations on states to reduce energy consumption in all sectors of the economy. This paper considers the extent of the obligations imposed by the Treaty and Protocol, and examines which obligations are binding as opposed to merely hortatory and how international law interacts in this field with each country's domestic laws. The paper concludes with a preview of likely future developments and modifications to the Energy Charter Treaty, including the likelihood and possible contents of further future Protocols.     

Climate change and energy policy in Eastern Europe: Two scenarios for the future

The citizens of Poland, Eastern Germany, Czechoslovakia, Hungary, and Romania inhabit perhaps the most polluted environments in the world, largely because of their countries' inefficient use of energy. Energy use is two to three times greater per unit of economic output than in Western Europe. Energy inefficiency also constrains economic growth by diverting capital to unproductive use. As much as 40% of all industrial investment in Poland was consumed in energy production.The emerging democracies of Eastern Europe have embarked on reforms to make their economies more efficient. We assess their potential for energy efficiency and apply end-use analysis in an energy end-use economic model to evaluate future energy use in the region. We assume that Eastern Europe will approach current Western living standards over the next three decades and that this will in turn increase energy consumption. We have found, nevertheless, that Eastern European nations could hold energy demand virtually constant through structural reform and technical energy-efficiency improvement. The six countries in the region could save as much as 3.5 exajoules per year, with savings yielding an economic benefit of $300 million annually.Capturing the energy-efficiency potential in Eastern Europe would require a combination of market forces and policy initiatives. Such optimistic prediction, however, should not be taken at face value. Financial and technical constraints will impede some of the potential gains in energy efficiency in Eastern Europe. Overcoming them will require national leadership and decisive international cooperation.     

Offshore wind energy policy for India—Key factors to be considered

Indian Economy is growing at a healthy pace during the last few years. To sustain this growth, power sector needs to build additional generation capacity. However, continued dependence on fossil fuels to power the growth of electricity generation capacity, is hardly sustainable. Renewable Energy source forms a miniscule portion (25 GW,∼12%) of India's overall power generation today (202 GW). The share of wind energy (17 GW) is 67% of the total renewable energy basket. But the contribution from offshore wind farms is non-existent, as all the wind energy generated in India is only through onshore wind farms. India needs a policy framework to encourage the development of offshore wind farms. Several European countries have effective offshore wind energy policies that have helped them to accelerate the growth of their offshore wind energy sector. This paper does an exhaustive literature survey, to identify 21 building blocks of a successful offshore wind energy policy initiative adopted by select European countries, which have been classified under 5 broad categories—Government support, Fiscal and quota based incentives, Availability of local expertise, Capital for investments and Building an enabling ecosystem, which can be leveraged by India to articulate its own offshore wind energy policy.     

Building a business to close the efficiency gap: the Swedish ESCO Experience

Energy service companies (ESCOs) are often portrayed as important change agents in capturing the opportunity to curb energy demand and mitigate climate change through increased efficiency. Yet, the literature in this area is limited. While many studies analyze economic and environmental savings from energy efficiency programs, far less attention has been devoted to evaluating managerial and other challenges for ESCOs to transform the “efficiency gap” into a viable business. Sweden presents an interesting case study given its early experience in energy market reform as well as the rapid growth in recent years of its ESCO market. By conducting in-depth interviews with ESCOs operating in Sweden, this research addresses the following: (1) current market opportunity analysis, including how Swedish market conditions shape firms' business strategies, (2) business characteristics and service functions, with attention to perceptions regarding which market segments are considered compelling, and (3) how policy might expand the size and attractiveness of additional sectors/market segments. This analysis is informed by additional discussions with policymaker, agencies, authorities, and customers. The insights garnered are important as Member States prepare to implement the Directive on Energy End-use Efficiency and Energy Services. Despite rapid growth, ongoing challenges remain for ESCOs. Government still has a role in education, policy, and residential sector solutions. Greater details and data on the energy savings produced by ESCO projects are needed. Future research could address best practices for reporting data from ESCO projects. Moreover, with additional data on ESCO projects, studies could benchmark these results with other international programs to promote energy efficiency.     

Testing the transport energy-environmental Kuznets curve hypothesis in the EU27 countries

Transport activities are essential for economic and social development. Nevertheless, the transport sector has also shown the fastest growth in energy consumption in the European Union and its contribution to increasing greenhouse gas emissions merits the thorough attention of academics and policy makers. In this paper we analyze the relationship of economic growth and transport activities with transport final energy consumption. Energy Kuznets curves are estimated for a panel data set covering the EU27 countries in the period 1995–2009 for total transport energy use, household transport energy use, and productive transport energy use (all three in absolute and per capita energy use terms). The productive transport energy use and gross value added relationship are further considered as per hour worked. Finally, the control variables of energy prices and differences in the economic structures are tested. Empirical results show that the elasticity of transport energy use with respect to gross value added in per capita terms decreases from a threshold for the three transport energy consumption variables, but the turning point of improved environmental quality is not reached in any instance.     

中国居民生活用能现状及展望

居民生活用能分析是能源政策研究中的重要组成部分。文章运用活动分析法借助于LEAP模型，对1999年中国居民能源消费情况进行了描述和分析，总结出中国居民生活能源消费的特点，并且针对未来发展趋势，提出了对策建议。     

French perspectives in the emerging European Union energy policy

The debate over a common European energy policy, its necessity and its establishment has been going on for a number of decades. The discussions have been recently brought back into the spotlight by the evolution of energy market fundamentals and the taking into account of environmental protection. In spite of the energy diversity of the European Union (EU), a common vision has always been shared by all over energy development for the future. The achievements of the internal market, the fight against climate change and supply security are the common energy battles that call for a solution in common. This policy remains the responsibility of the States, but decisions vary from one country to the next. To move from a shared vision to a European energy policy, large steps are necessary. The European construction is making evolve the “typically French vision” of energy policy. France was often characterized as the “black sheep” in the EU. In the political context of president elections, the energy debate in French is of a high interest. This paper discusses the main issues with the French energy policy in the emerging European energy policy.