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Drivers of increasing energy consumption in Europe and policy implications

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  • Thomas, Samuel
  • Rosenow, Jan

Abstract

Two years ago, the EU appeared to be well on the way to meeting its 2020 energy efficiency targets. 2014 final energy consumption was lower than in any year since the 1980s and lower than the level required in 2020. Since then, energy consumption has risen in two consecutive years and looks set to have kept on increasing. If these short-term trends continue, the 2020 targets will be missed. In this context, this paper analyses the drivers of recent increases in energy consumption, using index decomposition analysis breaking down changes in an aggregate indicator and assigning the effects to a number of predefined factors. We rely on a decomposition approach that is widely used across Europe and has been developed over more than 20 years as part of the Odyssee-Mure project. The paper also draws upon discussions at an expert workshop organised by the European Commission. The paper does identify areas where energy efficiency policies could be strengthened. We suggest that more ambitious policies are needed to drive improvements in building fabric and space heating efficiency, and that a greater focus on measurement, verification and enforcement of policies would improve the effectiveness of existing policies.

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  • Thomas, Samuel & Rosenow, Jan, 2020. "Drivers of increasing energy consumption in Europe and policy implications," Energy Policy, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519306950
    DOI: 10.1016/j.enpol.2019.111108
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    References listed on IDEAS

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    2. Linghui Zhang & Xin Ma & Shushen Zhang, 2020. "District Heating Energy Consumption of the Building Sector in the Jing-Jin-Ji urban Agglomeration: Decomposition and Decoupling Analysis," Sustainability, MDPI, vol. 12(6), pages 1-15, March.
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    4. Dorothée Charlier & Mouez Fodha & Djamel Kirat, 2023. "Residential CO2 Emissions in Europe and Carbon Taxation: A Country-Level Assessment," PSE-Ecole d'économie de Paris (Postprint) hal-03901487, HAL.
    5. Theile, Philipp & Farag, Markos & Kopp, Thomas, 2022. "Does information substitute or complement energy? - A mediation analysis of their relationship in European economies," VfS Annual Conference 2022 (Basel): Big Data in Economics 264123, Verein für Socialpolitik / German Economic Association.
    6. Tomasz Rokicki & Radosław Jadczak & Adam Kucharski & Piotr Bórawski & Aneta Bełdycka-Bórawska & András Szeberényi & Aleksandra Perkowska, 2022. "Changes in Energy Consumption and Energy Intensity in EU Countries as a Result of the COVID-19 Pandemic by Sector and Area Economy," Energies, MDPI, vol. 15(17), pages 1-26, August.
    7. Dorothée CHARLIER & Mouez FODHA & Djamel KIRAT, 2021. "CO2 Emissions from the Residential Sector in Europe: Some Insights form a Country-Level Assessment," LEO Working Papers / DR LEO 2849, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    8. Román-Collado, Rocío & Economidou, Marina, 2021. "The role of energy efficiency in assessing the progress towards the EU energy efficiency targets of 2020: Evidence from the European productive sectors," Energy Policy, Elsevier, vol. 156(C).
    9. Muntasir Murshed & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Mohga Bassim, 2020. "The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka," Energies, MDPI, vol. 13(24), pages 1-22, December.
    10. Shantha Indrajith H. Liyanage & Fulu Godfrey Netswera & Abel Motsumi, 2021. "Insights from EU Policy Framework in Aligning Sustainable Finance for Sustainable Development in Africa and Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 459-470.
    11. Driha, Oana & Cascetta, Furio & Nardini, Sergio & Bianco, Vincenzo, 2023. "Evolution of renewable energy generation in EU27. A decomposition analysis," Renewable Energy, Elsevier, vol. 207(C), pages 348-358.
    12. András Szeberényi & Ferenc Bakó, 2023. "Electricity Market Dynamics and Regional Interdependence in the Face of Pandemic Restrictions and the Russian–Ukrainian Conflict," Energies, MDPI, vol. 16(18), pages 1-22, September.
    13. Sultan Salem & Noman Arshed & Ahsan Anwar & Mubasher Iqbal & Nyla Sattar, 2021. "Renewable Energy Consumption and Carbon Emissions—Testing Nonlinearity for Highly Carbon Emitting Countries," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    14. Koasidis, Konstantinos & Marinakis, Vangelis & Nikas, Alexandros & Chira, Katerina & Flamos, Alexandros & Doukas, Haris, 2022. "Monetising behavioural change as a policy measure to support energy management in the residential sector: A case study in Greece," Energy Policy, Elsevier, vol. 161(C).

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