Energy saving obligations—cutting the Gordian Knot of leverage?

Rohde, Clemens, Rosenow, Jan, Eyre, Nick and Giraudet, Louis-Gaëtan (2015) Energy saving obligations—cutting the Gordian Knot of leverage? Energy Efficiency, 8 (1). pp. 129-140. ISSN 1570-646X

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Abstract

Better leverage of public funding is essential in order to trigger the investment needed for energy efficiency. In times of austerity governments increasingly look at policy instruments not funded by public expenditure and energy saving obligations represent one option. Because energy saving obligations are paid for by all energy customers, the degree to which they are able to raise additional private capital for energy efficiency investments is crucial with regard to the financial burden on consumers. In this paper, we systematically assess how successful energy saving obligations were in levering capital from parties other than the obligated entities including private investors and other public bodies. We analyse three countries with substantial experience with energy saving obligations, identify the main design differences and the effect this has on the degree of leverage. We conclude that the design of energy saving obligations largely determines the degree of leverage and that that there appears to be a trade-off between high leverage and additionality.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Depositing User: Nora Blascsok
Date Deposited: 30 Jul 2015 15:21
Last Modified: 13 Mar 2017 18:26
URI: http://sro.sussex.ac.uk/id/eprint/55855

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