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Market-Based Instruments to Promote Energy Efficiency: Insights from the Italian Case

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  • Di Foggia, Giacomo
  • Beccarello, Massimo
  • Borgarello, Marco
  • Bazzocchi, Francesca
  • Moscarelli, Stefano

Abstract

Market-based instruments such as white certificates offer the potential to increase efficiency gains, reduce primary energy consumption and make energy systems more resilient. The purpose of this paper is to provide insights into the white certificate scheme through a case study analysis. In light of increasing decarbonization and energy efficiency targets, it is important to rethink the role that policy instruments play in the energy transition, including the energy efficiency obligation schemes within which white certificate schemes fall. We focus on Italy’s white certificate scheme because it is among the longest-lived and has achieved notable results. The scheme is characterized by annually increasing energy savings targets, flexibility, the opportunity to include many interventions, and the role of energy services companies. We provide evidence based on an empirical survey and fill the research gap left by the latest updates to the scheme along with an appraisal of those updates, which covers prominent scheme innovations such as its stability mechanism. Our research can serve as a baseline for policymakers in designing white certificate schemes in countries with little related previous experience and provide useful information from countries where similar schemes have been implemented to fine-tune similar market-based mechanisms to improve energy efficiency

Suggested Citation

  • Di Foggia, Giacomo & Beccarello, Massimo & Borgarello, Marco & Bazzocchi, Francesca & Moscarelli, Stefano, 2022. "Market-Based Instruments to Promote Energy Efficiency: Insights from the Italian Case," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 15(20), pages 1-16.
    • Handle: RePEc:zbw:espost:265447
    DOI: 10.3390/en15207574
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    References listed on IDEAS

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    1. Hassan, Taimoor & Song, Huaming & Khan, Yasir & Kirikkaleli, Dervis, 2022. "Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies," Energy, Elsevier, vol. 243(C).
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    Cited by:

    1. Massimo Beccarello & Giacomo Di Foggia, 2023. "Review and Perspectives of Key Decarbonization Drivers to 2030," Energies, MDPI, vol. 16(3), pages 1-13, January.
    2. Giacomo Di Foggia & Massimo Beccarello & Ugo Arrigo, 2023. "Assessment of the European Emissions Trading System’s Impact on Sustainable Development," Sustainability, MDPI, vol. 16(1), pages 1-13, December.
    3. Reema Gh. Alajmi, 2024. "Total-Factor Energy Efficiency (TFEE) and CO 2 Emissions for GCC Countries," Sustainability, MDPI, vol. 16(2), pages 1-14, January.
    4. Bigerna, Simona & Ceccacci, Francesca & Micheli, Silvia & Polinori, Paolo, 2023. "Between saying and doing for ensuring energy resources supply: The case of Italy in time of crisis," Resources Policy, Elsevier, vol. 85(PA).

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    More about this item

    Keywords

    white certificate; EEO; energy efficiency; energy efficiency titles; market-based; energy policy;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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