IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v139y2020ics030142152030077x.html
   My bibliography  Save this article

Do energy efficiency policies save energy? A new approach based on energy policy indicators (in the EU Member States)

Author

Listed:
  • Bertoldi, Paolo
  • Mosconi, Rocco

Abstract

Over the last two decades, the European Union and its Member States have introduced policies aimed at improving energy efficiency. The Energy Service Directives (ESD) introduced the concept of measurement of energy savings attributed to policies. Two different and complementary methodologies for the evaluation of energy savings have been developed under the ESD: the bottom-up (BU) approach, based on a technical analysis of each measure, and the top-down (TD) approach, based on the analysis of how energy intensity changes over time. BU methods can hardly take into account policy-induced behavioural changes, whereas TD methods have difficulties in disentangling policy-induced savings from other savings. Econometric models have been proposed as a viable alternative to deal with both drawbacks. The purpose of this article is to present an econometric model aimed at estimating the energy savings induced by energy efficiency policies in the EU Member States in the period 1990–2013. We introduce an explicit measure of Energy Policy Intensity based on the MURE database, which is used as explanatory variable in a dynamic panel model for 29 European countries. Our results suggest that energy consumption in 2013 in Europe would have been about 12% higher in the absence of energy efficiency policies.

Suggested Citation

  • Bertoldi, Paolo & Mosconi, Rocco, 2020. "Do energy efficiency policies save energy? A new approach based on energy policy indicators (in the EU Member States)," Energy Policy, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:enepol:v:139:y:2020:i:c:s030142152030077x
    DOI: 10.1016/j.enpol.2020.111320
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152030077X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111320?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keane, Michael P., 2010. "Structural vs. atheoretic approaches to econometrics," Journal of Econometrics, Elsevier, vol. 156(1), pages 3-20, May.
    2. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    3. Nabitz, Lisa & Hirzel, Simon, 2019. "Transposing The Requirements of the Energy Efficiency Directive on Mandatory Energy Audits for Large Companies: A Policy‐Cycle‐based review of the National Implementation in the EU-28 Member States," Energy Policy, Elsevier, vol. 125(C), pages 548-561.
    4. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    5. Reichl, Johannes & Kollmann, Andrea, 2011. "The baseline in bottom-up energy efficiency and saving calculations - A concept for its formalisation and a discussion of relevant options," Applied Energy, Elsevier, vol. 88(2), pages 422-431, February.
    6. Giavazzi, Francesco & Tabellini, Guido, 2005. "Economic and political liberalizations," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1297-1330, October.
    7. Urga, Giovanni & Walters, Chris, 2003. "Dynamic translog and linear logit models: a factor demand analysis of interfuel substitution in US industrial energy demand," Energy Economics, Elsevier, vol. 25(1), pages 1-21, January.
    8. Filippini, Massimo & Hunt, Lester C., 2012. "US residential energy demand and energy efficiency: A stochastic demand frontier approach," Energy Economics, Elsevier, vol. 34(5), pages 1484-1491.
    9. Haydt, Gustavo & Leal, Vítor & Dias, Luís, 2014. "A multi-objective approach for developing national energy efficiency plans," Energy Policy, Elsevier, vol. 67(C), pages 16-27.
    10. Streimikiene, Dalia & Volochovic, Andzej & Simanaviciene, Zaneta, 2012. "Comparative assessment of policies targeting energy use efficiency in Lithuania," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3613-3620.
    11. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    12. Burman, Esfand & Mumovic, Dejan & Kimpian, Judit, 2014. "Towards measurement and verification of energy performance under the framework of the European directive for energy performance of buildings," Energy, Elsevier, vol. 77(C), pages 153-163.
    13. Sofia Tsemekidi Tzeiranaki & Paolo Bertoldi & Francesca Diluiso & Luca Castellazzi & Marina Economidou & Nicola Labanca & Tiago Ribeiro Serrenho & Paolo Zangheri, 2019. "Analysis of the EU Residential Energy Consumption: Trends and Determinants," Energies, MDPI, vol. 12(6), pages 1-27, March.
    14. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    15. Torsten Persson & Guido Tabellini, 2006. "Democracy and Development: The Devil in the Details," American Economic Review, American Economic Association, vol. 96(2), pages 319-324, May.
    16. Schlomann, Barbara & Schleich, Joachim, 2015. "Adoption of low-cost energy efficiency measures in the tertiary sector—An empirical analysis based on energy survey data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1127-1133.
    17. Rezessy, Silvia & Bertoldi, Paolo, 2011. "Voluntary agreements in the field of energy efficiency and emission reduction: Review and analysis of experiences in the European Union," Energy Policy, Elsevier, vol. 39(11), pages 7121-7129.
    18. Hall, V. B., 1986. "Major OECD country industrial sector interfuel substitution estimates, 1960-1979," Energy Economics, Elsevier, vol. 8(2), pages 74-89, April.
    19. Adeyemi, Olutomi I. & Hunt, Lester C., 2007. "Modelling OECD industrial energy demand: Asymmetric price responses and energy-saving technical change," Energy Economics, Elsevier, vol. 29(4), pages 693-709, July.
    20. Yearwood Travezan, Jessica & Harmsen, Robert & van Toledo, Gideon, 2013. "Policy analysis for energy efficiency in the built environment in Spain," Energy Policy, Elsevier, vol. 61(C), pages 317-326.
    21. Francis Teal & Markus Eberhardt, 2010. "Productivity Analysis in Global Manufacturing Production," Economics Series Working Papers 515, University of Oxford, Department of Economics.
    22. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    23. Ringel, Marc & Knodt, Michèle, 2018. "The Governance of the European Energy Union: Efficiency, effectiveness and acceptance of the Winter Package 2016," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 110990, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    24. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    25. Meng, Ting & Hsu, David & Han, Albert, 2017. "Estimating energy savings from benchmarking policies in New York City," Energy, Elsevier, vol. 133(C), pages 415-423.
    26. Horowitz, Marvin J. & Bertoldi, Paolo, 2015. "A harmonized calculation model for transforming EU bottom-up energy efficiency indicators into empirical estimates of policy impacts," Energy Economics, Elsevier, vol. 51(C), pages 135-148.
    27. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    28. Eberhardt, Markus & Teal, Francis, 2008. "Modeling technology and technological change in manufacturing: how do countries differ?," MPRA Paper 10690, University Library of Munich, Germany.
    29. Malinauskaite, J. & Jouhara, H. & Ahmad, L. & Milani, M. & Montorsi, L. & Venturelli, M., 2019. "Energy efficiency in industry: EU and national policies in Italy and the UK," Energy, Elsevier, vol. 172(C), pages 255-269.
    30. Patrick Sevestre & Laszlo Matyas, 2008. "The Econometrics of Panel Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00279977, HAL.
    31. Bjerregaard, Casper & Møller, Niels Framroze, 2019. "The impact of EU's energy labeling policy: An econometric analysis of increased transparency in the market for cold appliances in Denmark," Energy Policy, Elsevier, vol. 128(C), pages 891-899.
    32. Paolo Zangheri & Tiago Serrenho & Paolo Bertoldi, 2019. "Energy Savings from Feedback Systems: A Meta-Studies’ Review," Energies, MDPI, vol. 12(19), pages 1-18, October.
    33. David I. Stern, 2012. "Interfuel Substitution: A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 307-331, April.
    34. Thiel, Christian & Nijs, Wouter & Simoes, Sofia & Schmidt, Johannes & van Zyl, Arnold & Schmid, Erwin, 2016. "The impact of the EU car CO2 regulation on the energy system and the role of electro-mobility to achieve transport decarbonisation," Energy Policy, Elsevier, vol. 96(C), pages 153-166.
    35. Ronald L. Wasserstein & Nicole A. Lazar, 2016. "The ASA's Statement on p -Values: Context, Process, and Purpose," The American Statistician, Taylor & Francis Journals, vol. 70(2), pages 129-133, May.
    36. Cahill, Caiman J. & Ó Gallachóir, Brian P., 2010. "Monitoring energy efficiency trends in European industry: Which top-down method should be used?," Energy Policy, Elsevier, vol. 38(11), pages 6910-6918, November.
    37. Persson, Torsten, 2005. "Forms of Democracy, Policy and Economic Development," CEPR Discussion Papers 4938, C.E.P.R. Discussion Papers.
    38. Apajalahti, Eeva-Lotta & Lovio, Raimo & Heiskanen, Eva, 2015. "From demand side management (DSM) to energy efficiency services: A Finnish case study," Energy Policy, Elsevier, vol. 81(C), pages 76-85.
    39. Boonekamp, Piet G.M., 2006. "Evaluation of methods used to determine realized energy savings," Energy Policy, Elsevier, vol. 34(18), pages 3977-3992, December.
    40. Blakeley B. McShane & David Gal, 2017. "Rejoinder: Statistical Significance and the Dichotomization of Evidence," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 112(519), pages 904-908, July.
    41. Eoin Ó Broin & Jonas Nässén & Filip Johnsson, 2015. "Energy efficiency policies for space heating in EU countries: A panel data analysis for the period 1990–2010," Post-Print hal-01205485, HAL.
    42. Dani Rodrik & Romain Wacziarg, 2005. "Do Democratic Transitions Produce Bad Economic Outcomes?," American Economic Review, American Economic Association, vol. 95(2), pages 50-55, May.
    43. Schreiber Sven, 2008. "The Hausman Test Statistic can be Negative even Asymptotically," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(4), pages 394-405, August.
    44. deLlano-Paz, Fernando & Martínez Fernandez, Paulino & Soares, Isabel, 2016. "Addressing 2030 EU policy framework for energy and climate: Cost, risk and energy security issues," Energy, Elsevier, vol. 115(P2), pages 1347-1360.
    45. Aydin, Erdal & Brounen, Dirk, 2019. "The impact of policy on residential energy consumption," Energy, Elsevier, vol. 169(C), pages 115-129.
    46. Ó Broin, Eoin & Nässén, Jonas & Johnsson, Filip, 2015. "Energy efficiency policies for space heating in EU countries: A panel data analysis for the period 1990–2010," Applied Energy, Elsevier, vol. 150(C), pages 211-223.
    47. László Mátyás & Patrick Sevestre (ed.), 2008. "The Econometrics of Panel Data," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75892-1, July-Dece.
    48. Massimo Filippini & Lin Zhang, 2019. "Impacts of heat metering and efficiency retrofit policy on residential energy consumption in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 203-216, April.
    49. Laes, Erik & Mayeres, Inge & Renders, Nele & Valkering, Pieter & Verbeke, Stijn, 2018. "How do policies help to increase the uptake of carbon reduction measures in the EU residential sector? Evidence from recent studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 234-250.
    50. Wintoki, M. Babajide & Linck, James S. & Netter, Jeffry M., 2012. "Endogeneity and the dynamics of internal corporate governance," Journal of Financial Economics, Elsevier, vol. 105(3), pages 581-606.
    51. da Graça Carvalho, Maria, 2012. "EU energy and climate change strategy," Energy, Elsevier, vol. 40(1), pages 19-22.
    52. Lang, Corey & Siler, Matthew, 2013. "Engineering estimates versus impact evaluation of energy efficiency projects: Regression discontinuity evidence from a case study," Energy Policy, Elsevier, vol. 61(C), pages 360-370.
    53. Gupta, Monika & Bandyopadhyay, Kaushik Ranjan & Singh, Sanjay K., 2019. "Measuring effectiveness of carbon tax on Indian road passenger transport: A system dynamics approach," Energy Economics, Elsevier, vol. 81(C), pages 341-354.
    54. 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.
    55. Filippini, Massimo & Hunt, Lester C. & Zorić, Jelena, 2014. "Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector," Energy Policy, Elsevier, vol. 69(C), pages 73-81.
    56. Souvik Datta & Massimo Filippini, 2012. "Analysing the Impact of ENERGY STAR Rebate Policies in the US," CEPE Working paper series 12-86, CEPE Center for Energy Policy and Economics, ETH Zurich.
    57. Dascalaki, E.G. & Balaras, C.A. & Gaglia, A.G. & Droutsa, K.G. & Kontoyiannidis, S., 2012. "Energy performance of buildings—EPBD in Greece," Energy Policy, Elsevier, vol. 45(C), pages 469-477.
    58. Bertoldi, Paolo & Boza-Kiss, Benigna, 2017. "Analysis of barriers and drivers for the development of the ESCO markets in Europe," Energy Policy, Elsevier, vol. 107(C), pages 345-355.
    59. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    60. David Roodman, 2008. "Through the Looking-Glass, and What OLS Found There: On Growth, Foreign Aid, and Reverse Causality," Working Papers 137, Center for Global Development.
    61. Blakeley B. McShane & David Gal, 2017. "Statistical Significance and the Dichotomization of Evidence," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 112(519), pages 885-895, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sofia Tsemekidi Tzeiranaki & Paolo Bertoldi & Francesca Diluiso & Luca Castellazzi & Marina Economidou & Nicola Labanca & Tiago Ribeiro Serrenho & Paolo Zangheri, 2019. "Analysis of the EU Residential Energy Consumption: Trends and Determinants," Energies, MDPI, vol. 12(6), pages 1-27, March.
    2. Peñasco, Cristina & del Río, Pablo & Romero-Jordán, Desiderio, 2017. "Gas and electricity demand in Spanish manufacturing industries: An analysis using homogeneous and heterogeneous estimators," Utilities Policy, Elsevier, vol. 45(C), pages 45-60.
    3. Mitze, Timo & Alecke, Björn & Untiedt, Gerhard, 2008. "Trade, FDI and Cross-Variable Linkages: A German (Macro-)Regional Perspective," MPRA Paper 12245, University Library of Munich, Germany.
    4. Peppel-Srebrny, Jemima, 2021. "Not all government budget deficits are created equal: Evidence from advanced economies' sovereign bond markets," Journal of International Money and Finance, Elsevier, vol. 118(C).
    5. Cem Ertur & Antonio Musolesi, 2017. "Weak and Strong Cross‐Sectional Dependence: A Panel Data Analysis of International Technology Diffusion," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(3), pages 477-503, April.
    6. Antonio Ruiz Porras, 2016. "La investigación econométrica mediante paneles de datos:historia, modelos y usos en México," Archivos Revista Economía y Política., Facultad de Ciencias Económicas y Administrativas, Universidad de Cuenca., vol. 24, pages 11-32, Julio.
    7. Vasilis Sarafidis & Tom Wansbeek, 2012. "Cross-Sectional Dependence in Panel Data Analysis," Econometric Reviews, Taylor & Francis Journals, vol. 31(5), pages 483-531, September.
    8. Jan Fałkowski & Alessandro Olper, 2014. "Political competition and policy choices: the evidence from agricultural protection," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 143-158, March.
    9. Cavallo, Alberto F. & Cavallo, Eduardo A., 2010. "Are crises good for long-term growth? The role of political institutions," Journal of Macroeconomics, Elsevier, vol. 32(3), pages 838-857, September.
    10. Osvaldo Lagares, 2016. "Capital, Economic Growth and Relative Income Differences in Latin America," Discussion Papers 16/03, Department of Economics, University of York.
    11. José Durán-Cabré & Alejandro Esteller-Moré & Luca Salvadori, 2015. "Empirical evidence on horizontal competition in tax enforcement," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(5), pages 834-860, October.
    12. Biørn, Erik, 2012. "The Measurement Error Problem in Dynamic Panel Data Analysis: Modeling and GMM Estimation," Memorandum 02/2012, Oslo University, Department of Economics.
    13. Claudio Nuber & Patrick Velte, 2021. "Board gender diversity and carbon emissions: European evidence on curvilinear relationships and critical mass," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1958-1992, May.
    14. Jochen Hartwig, 2008. "Has Health Capital Formation Cured 'Baumol's Disease'? - Panel Granger Causality Evidence for OECD Countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich.
    15. Md. Shahidul Islam & Shin-Ichi Nishiyama, 2016. "The Determinants of Non-performing Loans: Dynamic Panel Evidence from South Asian Countries," TERG Discussion Papers 353, Graduate School of Economics and Management, Tohoku University.
    16. Barbara ERMINI & Raffaella SANTOLINI, 2013. "Does globalization matter on fiscal decentralization of OECD?," Working Papers 390, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    17. Theo S. Eicher & David J. Kuenzel, 2019. "European influence and economic development," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 667-734, May.
    18. Björn Alecke & Timo Mitze & Gerhard Untiedt, 2010. "Internal migration, regional labour market dynamics and implications for German East-West disparities: results from a Panel VAR," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 159-189, September.
    19. Eberhardt, Markus, 2019. "Democracy Does Cause Growth: Comment," CEPR Discussion Papers 13659, C.E.P.R. Discussion Papers.
    20. Sakiru Adebola Solarin, 2022. "Modelling Two Dimensions of Poverty in Selected Developing Countries: The Impact of Fossil Fuel Subsidies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 357-379, February.

    More about this item

    Keywords

    Energy efficiency policies; Energy policy indicators; Dynamic panel model; Energy efficiency policy evaluation;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:139:y:2020:i:c:s030142152030077x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.