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  4. Integrating environmental costs when calculating the energy efficiency potential
 
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2025
Journal Article
Title

Integrating environmental costs when calculating the energy efficiency potential

Abstract
Environmental pollution results in high costs for society in terms of transformation measures and adaptation to climate change. One way to directly measure and evaluate the impact of products, technologies and services on the environment is to introduce environmental costs. These costs can also be considered as avoided costs when it comes to savings opportunities. Integrating environmental costs in energy efficiency potential calculations allows stakeholders and decision-makers to compare the outcomes of different opportunities and can help to allocate the occurring damage directly to the consumer in order to create incentives. This paper incorporates environmental costs for greenhouse gas and air pollution emissions into the energy cost curve (CSC) by adding environmental damage costs of electricity generation to the energy price. Specifically, an environmental damage cost of electricity generation of 2.67 EUR-ct2022/kWh, with variations explored in a sensitivity analysis. Accounting for these environmental costs reduces the specific costs of conserved energy (SCCE), demonstrating a positive effect on the economic viability and cost-effectiveness of energy efficiency measures, and providing a more accurate assessment of the true impact of environmental pollution.
Author(s)
Arnold-Keifer, Sonja  orcid-logo
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Müller, Jasper
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Mandel, Tim  orcid-logo
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Journal
Cleaner Environmental Systems  
Open Access
File(s)
Download (1.72 MB)
Rights
CC BY 4.0: Creative Commons Attribution
DOI
10.1016/j.cesys.2025.100281
10.24406/publica-4634
Additional full text version
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Language
English
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Keyword(s)
  • Environmental costs

  • Energy efficiency potential

  • External costs

  • Internalisation

  • Conservation supply curve

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