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The need for comprehensive and well targeted instrument mixes to stimulate energy transitions: The case of energy efficiency policy

: Rosenow, Jan; Kern, Florian; Rogge, Karoline

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Energy research & social science 33 (2017), S.95-104
ISSN: 2214-6296
Zeitschriftenaufsatz, Elektronische Publikation
Fraunhofer ISI ()
policy mix; Innovation; technology; energy efficiency

To meet global climate goals an energy transition is needed. However, energy transitions are complex and long-term processes and require a variety of public policy interventions to steer their direction and speed to achieve global climate change mitigation targets. One area where policy support is required is energy efficiency, which offers a high potential for carbon savings. It is widely acknowledged that energy efficiency improvements will need to be faster and deeper than is currently the case and this requires policy instrument mixes to support both those energy efficiency measures that are simple and cost-effective as well as more complex and costly technologies. In other words, policy mixes need to be well-targeted and comprehensive. In this paper, we address the issue of comprehensiveness in terms of technology-specificity and the level of complexity and costliness of energy efficiency measures. We use an existing dataset produced as part of a pan-European effort to understand instrument mixes in 14 EU Member States in the area of energy efficiency. Based on the empirical analysis and our segmentation of instrument types and their role in the overall mix, we illustrate the need for using a comprehensive instrument mix rather than single instruments.