Profiting from negawatts: Reducing absolute consumption and emissions through a performance-based energy economy
AbstractCurrent energy and GHG emissions policies either focus directly on emissions or promote renewable production and the implementation of specific efficiency measures. Meanwhile, the fundamental structure of the energy market based on profits through energy throughput remains largely unchallenged. This policy oversight prevents the transition to an energy economy in which profits are based on energy services delivered at the lowest energy cost: a performance-based energy economy (PBEE). The PBEE applies the combined concepts of the performance economy and energy services to the energy sector. Energy Service Companies (ESCOs) are discussed as an example of PBEE practices. The implications for energy suppliers and consumers as well as the conditions for PBEE diffusion and consequences for technological change are also explored. The expected environmental, social and economic benefits are described. However, absolute consumption and emissions reductions may prove elusive due to the rebound effect. In order to forestall rebound-led increases, complementary policy measures likely to lead to absolute reductions are required.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 37 (2009)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Performance contracting Energy consumption Demand-side management;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
- Krausmann, Fridolin & Schandl, Heinz & Sieferle, Rolf Peter, 2008.
"Socio-ecological regime transitions in Austria and the United Kingdom,"
Elsevier, vol. 65(1), pages 187-201, March.
- Fridolin Krausmann & Heinz Schandl & Rolf Peter Sieferle, 2007. "Socio-Ecological Regime Transitions in Austria and the United Kingdom," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2007-05, CSIRO Sustainable Ecosystems.
- Weber, Christopher L. & Matthews, H. Scott, 2008. "Quantifying the global and distributional aspects of American household carbon footprint," Ecological Economics, Elsevier, vol. 66(2-3), pages 379-391, June.
- Ayres, Robert U. & Turton, Hal & Casten, Tom, 2007. "Energy efficiency, sustainability and economic growth," Energy, Elsevier, vol. 32(5), pages 634-648.
- Jaccard, Mark & Failing, Lee & Berry, Trent, 1997. "From equipment to infrastructure: community energy management and greenhouse gas emission reduction," Energy Policy, Elsevier, vol. 25(13), pages 1065-1074, November.
- Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
- Kemmler, Andreas & Spreng, Daniel, 2007. "Energy indicators for tracking sustainability in developing countries," Energy Policy, Elsevier, vol. 35(4), pages 2466-2480, April.
- Spreng, Daniel, 2005. "Distribution of energy consumption and the 2000 W/capita target," Energy Policy, Elsevier, vol. 33(15), pages 1905-1911, October.
- Roy, Joyashree, 2000. "The rebound effect: some empirical evidence from India," Energy Policy, Elsevier, vol. 28(6-7), pages 433-438, June.
- Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
- Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
- Haberl, Helmut, 2006. "The global socioeconomic energetic metabolism as a sustainability problem," Energy, Elsevier, vol. 31(1), pages 87-99.
- Hannon, Matthew J. & Foxon, Timothy J. & Gale, William F., 2013. "The co-evolutionary relationship between Energy Service Companies and the UK energy system: Implications for a low-carbon transition," Energy Policy, Elsevier, vol. 61(C), pages 1031-1045.
- Marion Drut, 2012. "Vers un système de transport opérant selon les principes de l'économie de la fonctionnalité," Working Papers hal-00992621, HAL.
- Marion Drut, 2013. "Vers un système de transport opérant selon les principes de l'économie de la fonctionnalité?," Working Papers hal-00996379, HAL.
- Ingrid Vaileanu Paun, 2010. "Vers Une Territorialisation De La Valeur Des Entreprises : Les Apports De L'Economie De La Fonctionnalite," Post-Print halshs-00560441, HAL.
- Hull, David & Ó Gallachóir, Brian P. & Walker, Neil, 2009. "Development of a modelling framework in response to new European energy-efficiency regulatory obligations: The Irish experience," Energy Policy, Elsevier, vol. 37(12), pages 5363-5375, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.