Design of Effective Energy Efficiency Policies: An analysis in the frame of target setting, monitoring and evaluation

Abstract

Energy efficiency (EE) is widely acknowledged as the most important strategy for achieving global energy and climate targets. Apart from its contribution to the reduction of energy consumption and energy-related greenhouse gas emissions (GHG), improving energy efficiency can deliver a range of co-benefits to the economy and society. But in spite of the widely undisputed role of energy efficiency as a corner stone of worldwide and European energy and climate policy, there are indications that energy efficiency policy is still insufficiently anchored both in the European Union and many Member States and at an international level. Therefore, this thesis focuses on the question how to create more favourable preconditions for a better anchoring of energy efficiency in energy and climate policy. The design of EE policies is analyzed in the frame of the setting of EE targets and the monitoring and evaluation of their success. As a main result of this thesis, the following key elements for the design of a more effective energy efficiency policy were identified: • The setting of an ambitious and mandatory EE target (anchored in a more general and coherent target frame) which is derived from cost-effective energy efficiency potentials. • The regular monitoring of the progress toward the targets using suitable monitoring methods and based on precise definitions of EE measuring. • A sufficient availability of necessary statistical and measure-related data being a prerequisite for all monitoring approaches of energy efficiency. • The design of suitable bundles of EE policy instruments which simultaneously reduce major obstacles hindering the exploitation of cost-effective EE potentials. • The consideration of all relevant actors and targets groups in the product cycle of energy efficiency and making use of the specific motivations of these groups. • The adoption of a multi-criteria approach for the design of the policy mix which takes into account both quantitative and qualitative criteria There are indications that the current moment is a good time for the application of at least some of these findings in actual energy efficiency policy. At the European level, the full implementation of the Energy Efficiency Directive (EED) demands the implementation of new or at least comprehensively improved EE policy instruments. The new framework for EU energy and climate policies up until 2030 would allow the introduction of an ambitious EE target. And Germany, which is the by far biggest energy consumer in the European Union, has decided on a fundamental transition of its energy system, which requires a considerable increase in energy efficiency. Another driver for a stronger focus on energy efficiency within energy and climate policy is the growing importance of the so-called co-benefits of energy efficiency in political and public discussion. These comprise macro-economic impacts such as an increase in GDP and employment, the improvement of competitiveness at the national or company level, and an increase in energy security through the reduction of energy imports. These co-benefits can be an additional justification for the setting of ambitious EE targets and the design of effective EE policies.