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Method for integrated evaluation of benefits, costs and effects of programmes for promoting energy conservation


1. To review existing studies on energy conservation potentials and barriers;
2. To review in-depth the major national and EU programmes and other policy instruments for energy conservation promotion;
3. To conduct case studies in 6 countries for 2 sectors, and review conservation policies and test the design of the methodology; 4. To formulate recommendations for the EU conservation policies as well as for national governments on policies and programmes to promote energy conservation.

Technical Approach
An international review of energy conservation studies and policy instruments on their application and effectiveness will be conducted. The modification and evaluation of a dynamic market penetration concept for energy conservation options will be executed. The model takes into account economic, social and behavioral aspects of penetration of energy conservation technology in different market niches and the effects of policy measures upon the penetration. Competition and interaction of options is endogenously included in the model. The resulting (saving of) energy end-use is calculated as well as the CO2 emissions (reduction). The model will be tested to select most effective energy conservation instruments in different energy market environments (different countries, regulations etc.). The link between behavioral market responses and changing incentives/market conditions due to policy measures will be based on a survey technique recently developed and applied in the Netherlands.
Expected Achievements and Exploitation
The project team will provide:
- A review of national conservation studies and programmes on potentials, realisations, incentives, barriers and benefits and costs. Particular attention will be paid to the role of liberalisation of energy markets and their effects on DSM and other conservation actions.
- A survey for identifying the behavioral aspects of decisions in industry and households as a reason for potentials not being achieved and policies not being effective.
- A methodology for integrated assessment of benefits, costs, and effects on demand and CO2 emissions of different policy programmes and measures applicable by the Commission. This model will be applicable for member states with different priorities and scope for energy conservation actions. - 6 country case studies with the model on benefits, costs, and market penetration of conservation options and effects of different competing policy instruments, including surcharges for external costs. - A report with recommendations and guidelines for Commission and members states on policies and programmes directed towards implementation of different instruments such as DSM, different energy conservation incentives and measures to stimulate rational use of energy.
- Recommendations for a more effective conservation policy for EU in addition to already ongoing activities in member states in a Forum workshop of EU experts.

Funding Scheme

CSC - Cost-sharing contracts
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Participants (7)

Association for the Conservation of Energy
United Kingdom
9 Sherlock Mews
W1M 3RH London
Ecoplan Wirtschafts- und Umweltstudie
3011 Bern
Instituto para la Diversificación y Ahorro de la Energía
95,Paseo De La Castellana
28046 Madrid
Linköping University

581 83 Linköping
SRC International SpA
1456 København
Technical Research Centre of Finland
4 C,tekniikantie
02044 Espoo
Universiteit van Amsterdam
1018 WB Amsterdam