In its review of programmes targeting financial barriers (de T'Serclaes, 2007)
finds that the challenges to energy efficiency rather lie on a more carefully
designed policy packages than on an increase in financial resources. A successful
strategy is the combination of “sticks” (regulations) with “carrots” (incentives)
and “tambourines” (awareness raising campaign) (Warren, 2007, cited by
Koeppel and Urge-Vorsatz, 2007). Our review of policies has provided some
evidence on this. We have shown that an integrated demand side strategy is
32
based on the recognition that no singly policy alone can overcome the barriers to
energy efficiency, which are diverse and spread out over a wide range of actors
and sectors. Policies may address several barriers at the same time and treating
them as complementary strengthens their impact (Lee and Yik, 2004; Sovacool,
2009).
This requires an “integrated policy strategy”, i.e. a holistic underlying approach.
We suggested that packages of policies reveal different cultural and conceptual
approaches, as well as methodologies and that policy making might benefit from
departing from a focus on the strengths and weaknesses of isolated instruments
towards a more comprehensive analysis accounting for their interactions. This
also opens new avenues for research, as in dynamic modelling for instance; and
the need of creating a market for energy efficiency, still very rare. In the UK for
instance, the reliance on marginal abatement cost curves as aid for policymaking
might explain the existing lack of coherence. On the contrary, Denmark’s
culture for environmental preservation which goes far beyond the energy sector
could well facilitate an integrative approach. The Japanese example reveals an
explicit account and exploitation of policy interactions.
“Success” factors of a well-designed energy efficiency strategy have been
provided, such as the existence of clear objectives and mandates; the
participation of stakeholders; the ability to combine flexibility and sustainability;
and the ability to adapt and integrate adjacent policies (Harmelink et al., 2008).
Flexibility is required as policies interact with each other, and their impact
evolves over time. Sustainability creates certainty and can be fostered through
the integration into market transformation strategies (Sovacool, 2009). The most
successful packages are clear, effective and sustainable while remaining flexible.
The importance of post-evaluation studies and benchmarking has also been
highlighted repeatedly (Lee and Yik, 2004; IEA, 2009a). As regards the specific
mix of policies, particularly effective combinations involve both private and
public actors, e.g. through PPP. Effective DSM measures difficultly take off by
private actors, and government action is often needed to encourage action and
investments by private actors. Hence, political will is required, in order to reduce
uncertainty. In general, policy-makers show a move towards a holistic approach
(Lee and Yik, 2004). In the US, Denmark and Japan, integrated packages of DSM
come throughout each of the more general energy efficiency measure. As such,
they do not duplicate energy efficiency measures in the residential sector, but
rather augment and strengthen them, as illustrated in the case of California
In its review of programmes targeting financial barriers (de T'Serclaes, 2007)finds that the challenges to energy efficiency rather lie on a more carefullydesigned policy packages than on an increase in financial resources. A successfulstrategy is the combination of “sticks” (regulations) with “carrots” (incentives)and “tambourines” (awareness raising campaign) (Warren, 2007, cited byKoeppel and Urge-Vorsatz, 2007). Our review of policies has provided someevidence on this. We have shown that an integrated demand side strategy is 32based on the recognition that no singly policy alone can overcome the barriers toenergy efficiency, which are diverse and spread out over a wide range of actorsand sectors. Policies may address several barriers at the same time and treatingthem as complementary strengthens their impact (Lee and Yik, 2004; Sovacool,2009).This requires an “integrated policy strategy”, i.e. a holistic underlying approach.We suggested that packages of policies reveal different cultural and conceptualapproaches, as well as methodologies and that policy making might benefit fromdeparting from a focus on the strengths and weaknesses of isolated instrumentstowards a more comprehensive analysis accounting for their interactions. Thisalso opens new avenues for research, as in dynamic modelling for instance; andthe need of creating a market for energy efficiency, still very rare. In the UK forinstance, the reliance on marginal abatement cost curves as aid for policymakingmight explain the existing lack of coherence. On the contrary, Denmark’sculture for environmental preservation which goes far beyond the energy sectorcould well facilitate an integrative approach. The Japanese example reveals anexplicit account and exploitation of policy interactions.“Success” factors of a well-designed energy efficiency strategy have beenprovided, such as the existence of clear objectives and mandates; theparticipation of stakeholders; the ability to combine flexibility and sustainability;and the ability to adapt and integrate adjacent policies (Harmelink et al., 2008).Flexibility is required as policies interact with each other, and their impactevolves over time. Sustainability creates certainty and can be fostered throughthe integration into market transformation strategies (Sovacool, 2009). The mostsuccessful packages are clear, effective and sustainable while remaining flexible.The importance of post-evaluation studies and benchmarking has also beenhighlighted repeatedly (Lee and Yik, 2004; IEA, 2009a). As regards the specificmix of policies, particularly effective combinations involve both private andpublic actors, e.g. through PPP. Effective DSM measures difficultly take off byprivate actors, and government action is often needed to encourage action andinvestments by private actors. Hence, political will is required, in order to reduceuncertainty. In general, policy-makers show a move towards a holistic approach(Lee and Yik, 2004). In the US, Denmark and Japan, integrated packages of DSMcome throughout each of the more general energy efficiency measure. As such,they do not duplicate energy efficiency measures in the residential sector, butrather augment and strengthen them, as illustrated in the case of California
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