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An ex-ante evaluation of the EU Energy Efficiency Directive - Article 7

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  • Jan Rosenow, Cor Leguijt, Zsuzsanna Pato, Nick Eyre, and Tina Fawcet

Abstract

The European Union's Energy Efficiency Directive calls for EU Member States to put in place ambitious energy efficiency policies and requires them to establish energy saving targets. One of the most important Articles of the Directive is Article 7, which required Member States to implement Energy Efficiency Obligations and/or alternative policy instruments in order to reach a reduction in final energy use of 1.5% per year. This paper assesses how Article 7 has been applied by Member States and what the implications are. Analysing the plans of all 28 Member States we evaluate how Article 7 is implemented across the EU. This includes an analysis of the types of policies used, the distribution of the anticipated savings across the different policy instruments, and whether or not the way Article 7 is applied in reality meets the requirements set by the Directive. Our analysis shows that Member States take very different approaches with some using up to 112 policy measures and others just one. We also identify areas of concern particularly related to the delivery of the energy savings with respect to the Article 7 requirements, the calculation methods, and the monitoring and verification regimes adopted by Member States. We model to what extent the projected savings are likely to materialise and whether or not they will be sufficient to meet the target put forward by Article 7. In our paper we also make suggestions for modifying the Energy Efficiency Directive in order to address some of the problems we encountered.

Suggested Citation

  • Jan Rosenow, Cor Leguijt, Zsuzsanna Pato, Nick Eyre, and Tina Fawcet, 2016. "An ex-ante evaluation of the EU Energy Efficiency Directive - Article 7," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
  • Handle: RePEc:aen:eeepjl:eeep5-2-rosenow
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    Cited by:

    1. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    2. Andersen, Kristoffer Steen & Wiese, Catharina & Petrovic, Stefan & McKenna, Russell, 2020. "Exploring the role of households’ hurdle rates and demand elasticities in meeting Danish energy-savings target," Energy Policy, Elsevier, vol. 146(C).
    3. Franzò, Simone & Frattini, Federico & Cagno, Enrico & Trianni, Andrea, 2019. "A multi-stakeholder analysis of the economic efficiency of industrial energy efficiency policies: Empirical evidence from ten years of the Italian White Certificate Scheme," Applied Energy, Elsevier, vol. 240(C), pages 424-435.
    4. Ünal, Berat Berkan & Onaygil, Sermin & Acuner, Ebru & Cin, Rabia, 2022. "Application of energy efficiency obligation scheme for electricity distribution companies in Turkey," Energy Policy, Elsevier, vol. 163(C).
    5. Andersen, Kristoffer Steen & Dockweiler, Steffen & Klinge Jacobsen, Henrik, 2019. "Squaring the energy efficiency circle: evaluating industry energy efficiency policy in a hybrid model setting," MPRA Paper 96546, University Library of Munich, Germany.
    6. Thomas, Samuel & Rosenow, Jan, 2020. "Drivers of increasing energy consumption in Europe and policy implications," Energy Policy, Elsevier, vol. 137(C).
    7. Meng, Ming & Qu, Danlei, 2022. "Understanding the green energy efficiencies of provinces in China: A Super-SBM and GML analysis," Energy, Elsevier, vol. 239(PA).
    8. Rosenow, Jan & Bayer, Edith, 2017. "Costs and benefits of Energy Efficiency Obligations: A review of European programmes," Energy Policy, Elsevier, vol. 107(C), pages 53-62.
    9. Frilingou, Natasha & Koasidis, Konstantinos & Spyridaki, Niki-Artemis & Nikas, Alexandros & Marinakis, Vangelis & Doukas, Haris, 2024. "Is it feasible to implement minimum energy performance standards (MEPS) for existing buildings in Greece? A cost-benefit evaluation," Energy Policy, Elsevier, vol. 188(C).
    10. Rosenow, Jan & Skoczkowski, Tadeusz & Thomas, Samuel & Węglarz, Arkadiusz & Stańczyk, Wojciech & Jędra, Michał, 2020. "Evaluating the Polish White Certificate scheme," Energy Policy, Elsevier, vol. 144(C).

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    JEL classification:

    • F0 - International Economics - - General

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