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Four reasons why there is so much confusion about energy efficiency

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  • Goh, Tian
  • Ang, B.W.

Abstract

Energy efficiency is one of the key goals in energy and climate policies. However, it is known to be difficult to define and measure. In the literature, there are many debates on the appropriate way to measure energy efficiency performance for policy development. There is also a fair share of confusion over how different energy efficiency performance estimates should be interpreted. We discuss the sources of contention by examining different definitions, methods, measures and policy objectives that are used to evaluate energy efficiency. The objective is to present the different results and purposes in a systematic manner within the broader end goal of improving national energy efficiency. A clearer picture of the underlying assumptions, boundaries and perspectives behind energy efficiency performance is important for policy assessment. With this larger goal in mind, we conclude that policymakers are free to choose any definition, method and measure for analysis. However, results should be interpreted with respect to the method, assumptions, limitations and context that they were developed for. Specifically, differences in results at different levels of analysis should be studied in detail to understand the challenges faced in translating efficiency improvements at the device, process and sub-sector levels to national level improvements.

Suggested Citation

  • Goh, Tian & Ang, B.W., 2020. "Four reasons why there is so much confusion about energy efficiency," Energy Policy, Elsevier, vol. 146(C).
    • Handle: RePEc:eee:enepol:v:146:y:2020:i:c:s0301421520305498
    DOI: 10.1016/j.enpol.2020.111832
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