Combining the EU ETS and EU Energy End-Use Policies: A Policy Proposal Achieving Faster EU CO2 Emission Reductions
2012 (English)In: Clean Energy: Resources, Production and Developments / [ed] Alden M Harris, Nova Science Publishers, Inc., 2012, 455-461 p.Chapter in book (Refereed)
Numerous studies indicate that even cost-efficient energy efficiency measures are not always undertaken which emphasizes the need for effective energy end-use policy instruments to be adopted. In order to reduce market barriers and imperfections, the European Union has adopted energy end-use policies such as the European Energy Enduse Efficiency and Energy Services Directive (ESD). The EU Emissions Trading Scheme (EU ETS) is yet another policy instrument aimed towards energy suppliers. The EU ETS will most likely lead to increased energy prices, which, according to economic theory, will increase the implementation of cost-efficient energy efficiency measures. However, and as argued in this chapter, energy end-use measures that are undertaken within the EU will not necessarily lead to reduced emissions of CO2 as the level of CO2 emissions has been fixed within the trading parts of the economy, through the EU ETS. The aim of this chapter is to present a policy concept which combines the current top-down approach based on mainstream economic theory of decreasing the cap, and a bottom-up approach based on engineering-economic models. For example, CO2 emission reductions coming from implemented energy end-use efficiency measures through each Member State’s energy end-use policies proposed in its NEEAP (National Energy Efficiency Action Plan) is suggested to lead to continuous withdrawal of EUAs. The most prominent advantage of such a concept is faster CO2 emission reductions, even during an EU ETS period, as the number of available EUAs is withdrawn continuously when demand-side actors outside of the EU ETS invest in energy efficient technologies.
Place, publisher, year, edition, pages
Nova Science Publishers, Inc., 2012. 455-461 p.
Public Administration Studies
IdentifiersURN: urn:nbn:se:liu:diva-88771ISBN: 978-1-61761-509-2OAI: oai:DiVA.org:liu-88771DiVA: diva2:606160