A policy design framework to identify the characteristics of robust energy efficiency policies

Panel: 2. Current energy efficiency policies: On stage and backstage

This is a peer-reviewed paper.

Authors:
Robert Passey, Centre for Energy and Environmental Markets, School of Electrical Engineering and Telecommunications, University of New South Wales, Australia
Iain MacGill, Center for Energy and Environmental Markets, School of Electrical Engineering and Telecommunications, University of New South Wales, United Kingdom

Abstract

Although public energy efficiency policy is ultimately set by government, it arises via a complex social process involving interactions between potentially numerous different groups. The final policy design is altered according to the aims of the various groups involved and how well each manages to influence the process. Governments can employ various strategies to navigate this process, one of which is the choice and detailed design of the policy instrument itself.

This paper presents a framework that aims to to identify the characteristics of energy efficiency policies that affect firstly their likelihood of introduction, and then their robustness against adverse changes during the policy development process. We apply this framework to eight different Australian energy efficiency policies that can be divided into three different types: Support mechanisms (Energy Efficiency Opportunities and the Australian Carbon Trust Energy Efficiency Program); Command and control (Minimum Energy Performance Standards and the Building Sustainability Index); and Price-based mechanisms (NSW Home Saver Rebates and three State-based white certificate schemes).

This assessment can help explain why some types of energy efficiency policies are implemented and are more effective than others. It may therefore provide guidance not only regarding the types of policies that governments could favour, but how to design them so they are more likely to be effective after emerging from the policy development process.