How to realize economic potentials for reducing greenhouse gases - the role of technology-specific programmes in energy efficiency
Even at today's fuel and electricity prices there remains a large potential for economically justified energy efficiency improvement in virtually every sector. These potentials for reducing energy-related greenhouse gases are far from beeing exhausted. The technical potentials range between 30 and 80% and will be constantly increased by learning curves, economy of scale effects, and by internalizing external costs of energy consumption. Obstacles and market imperfections hinder economic potentials from being fully realized, particulary in their economic "time windows". Obstacles and market imperfections are mostly groupspecific (e.g. private households, small and medium-sized firms and city administrations) or technology-specific (e.g. condensing boilers, insulation of existing buildings, heat pumps, cogeneration). The paper covers our strategic policies for reducing greenhouse gas emissions by improved energy efficiency: in mass products (cars, boilers, electrical appliances), in indi vidual technical solutions (buildings, plants), in small and medium sized industries (basic innovations), and by increasing the economic potentials (cost-oriented tariffs, interalization of external costs). Although these strategic policy principles could be applied to any nation, empirical research observes their implementation today in only few instances in most OECD countries.