Gadgets and Gigawatts Policies for Energy Efficient by Organization for Economic Cooperation and Development (OECD)

By Organization for Economic Cooperation and Development (OECD)

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6 of net benefits for every GJ of energy saved. Table 4 summarises the lifetime energy impact and total cost effectiveness of the eight programmes. The eight programmes clearly delivered significant energy savings, and most are extremely costeffective; a finding that is corroborated by many other energy efficiency policy evaluations that could not be standardised into a comparable format. For example, other elements of the Thailand DSM programme and the New York load reduction programme all report energy savings at a benefit cost ratio of around 2:1 or higher (Agra Monenco and Hydro, 2000; NYSERDA, 2007).

Comparing evaluations Different evaluation approaches are used within countries, and even more so at the global level, since there is no single agreed method for conducting energy efficiency policy evaluations. The heterogeneity of appliance policies means that evaluations adopt different boundary definitions, and various methods for measuring energy savings to suit their individual context. For example, not all studies attempt to take account of free-rider issues; and some studies examine costs and benefits by sector (government, industry, end-user, society).

Chapter 2 • Effective policies for energy efficiency 41 © OECD/IEA, 2009 Will policy measures which internalise the price of carbon fix the problem on their own? While the idea of using a single policy instrument, in this case the price mechanism, is very attractive, it will not overcome many of the barriers that exist in appliance markets. The reasons for this are as follows. The impact on prices is likely to be small. 1 A subsequent review of the impact of the ETS in Germany and the Netherlands found that residential prices rose during 2005 and 2006 by approximately these amounts, although these may be attributable to a range of factors including the ETS (ECN, 2008).

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