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

Author

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  • 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.)

Abstract

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.

Suggested Citation

  • Massimo Filippini & Lester C Hunt & Jelena Zoric, 2013. "Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 139, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
  • Handle: RePEc:sur:seedps:139
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    File URL: http://www.seec.surrey.ac.uk/Research/SEEDS/SEEDS139.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    2. Giovanni Marin & Alessandro Palma, 2015. "Technology Invention and Diffusion in Residential Energy Consumption. A Stochastic Frontier Approach," Working Papers 2015.104, Fondazione Eni Enrico Mattei.
    3. Vera, Sonia & Sauma, Enzo, 2015. "Does a carbon tax make sense in countries with still a high potential for energy efficiency? Comparison between the reducing-emissions effects of carbon tax and energy efficiency measures in the Chile," Energy, Elsevier, vol. 88(C), pages 478-488.
    4. Ó Broin, Eoin & Nässén, Jonas & Johnsson, Filip, 2015. "The influence of price and non-price effects on demand for heating in the EU residential sector," Energy, Elsevier, vol. 81(C), pages 146-158.
    5. Filippini, Massimo & Hunt, Lester C., 2015. "Measurement of energy efficiency based on economic foundations," Energy Economics, Elsevier, vol. 52(S1), pages 5-16.
    6. repec:gam:jsusta:v:10:y:2018:i:2:p:162-:d:128191 is not listed on IDEAS
    7. Llorca, Manuel & Jamasb, Tooraj, 2017. "Energy efficiency and rebound effect in European road freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 98-110.
    8. Marinela Krstinić Nižić & Marcel Bračić, 2014. "Effective use of resources in tourist facilities - focus on energy efficiency," Tourism and Hospitality Industry section3-1, University of Rijeka, Faculty of Tourism and Hospitality Management.
    9. repec:gam:jsusta:v:9:y:2017:i:8:p:1414-:d:108330 is not listed on IDEAS
    10. repec:eee:juipol:v:47:y:2017:i:c:p:58-68 is not listed on IDEAS
    11. repec:hal:wpaper:hal-01205485 is not listed on IDEAS
    12. 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, pages 211-223.
    13. Christopoulos, Stamatios & Demir, Cansu & Kull, Michael, 2016. "Cross-sectoral coordination for sustainable solutions in Croatia: The (meta) governance of energy efficiency," Energy Policy, Elsevier, vol. 99(C), pages 57-87.
    14. Du, Kerui & Lin, Boqiang, 2017. "International comparison of total-factor energy productivity growth: A parametric Malmquist index approach," Energy, Elsevier, vol. 118(C), pages 481-488.
    15. Pablo-Romero, María del P. & Pozo-Barajas, Rafael & Yñiguez, Rocío, 2017. "Global changes in residential energy consumption," Energy Policy, Elsevier, vol. 101(C), pages 342-352.
    16. Collado, Rocío Román & Díaz, María Teresa Sanz, 2017. "Analysis of energy end-use efficiency policy in Spain," Energy Policy, Elsevier, vol. 101(C), pages 436-446.
    17. repec:eee:eneeco:v:66:y:2017:i:c:p:85-98 is not listed on IDEAS
    18. repec:eee:energy:v:125:y:2017:i:c:p:44-54 is not listed on IDEAS
    19. repec:eee:eneeco:v:63:y:2017:i:c:p:288-300 is not listed on IDEAS

    More about this item

    Keywords

    energy efficiency; residential energy demand; stochastic frontier analysis; policy measures.;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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