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Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector

  • Massimo Filippini

    ()

    (Centre for Energy Policy and Economics (cepe), ETH Zurich and Department of Economics, University of Lugano, Switzerland.)

  • Lester C Hunt

    ()

    (Surrey Energy Economics Centre (SEEC), University of Surrey, UK.)

  • Jelena Zoric

    ()

    (Centre for Energy Policy and Economics (CEPE), ETH Zurich, Switzerland, and Faculty of Economics, University of Ljubljana, Slovenia.)

The promotion of energy efficiency is seen as one of the top priorities of EU energy policy (EC, 2010). In order to design and implement effective energy policy instruments, it is necessary to have information on energy demand price and income elasticities in addition to sound indicators of energy efficiency. This research combines the approaches taken in energy demand modelling and frontier analysis in order to econometrically estimate the level of energy efficiency for the residential sector in the EU-27 member states for the period 1996 to 2009. The estimates for the energy efficiency confirm that the EU residential sector indeed holds a relatively high potential for energy savings from reduced inefficiency. Therefore, despite the common objective to decrease ‘wasteful’ energy consumption, considerable variation in energy efficiency between the EU member states is established, implying that not all countries have been successful in achieving such energy savings. Furthermore, an attempt is made to evaluate the impact of energy-efficiency measures undertaken in the EU residential sector by introducing an additional set of variables into the model and the results suggest that financial incentives and energy performance standards play an important role in promoting energy efficiency improvements, whereas informative measures do not have a significant impact.

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File URL: http://www.seec.surrey.ac.uk/Research/SEEDS/SEEDS139.pdf
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Paper provided by Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey in its series Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) with number 139.

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Length: 32 pages
Date of creation: Feb 2013
Date of revision:
Publication status: Published in Energy Policy, Vol. 69, June, 2014, pp. 73–81 (Revised Version)
Handle: RePEc:sur:seedps:139
Contact details of provider: Postal: Guildford, Surrey GU2 5XH, UK
Phone: +44(0)1483 686956
Fax: +44(0)1483 689548
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