Energy Efficiency Policy Instruments and Measures

Abstract

This study aims at describing energy production, consumption and supply trends, review, comparison and evaluation of energy efficiency policies, policy instruments and measures in the five industrialised European countries- France, Germany, Italy, Sweden and the United Kingdom and provides recommendation to Bhutan, an Asian country. The recommendations are more generic in nature which could be implemented in most of the developing nations which are freshly boarding in the energy market. From the review analysis, it is seen that most of the recent policies are amended forms of the earlier energy efficiency policies, which are in place incorporating the climate change policies. In doing so, the energy efficiency policies not effective at times have proven more effective in coalition than in separate, with the expected result in lowering the primary energy supply and reducing the carbon dioxide (CO₂) emissions. From the evaluation, it is seen that the energy efficiency policy instruments and measures in residential sector are very mature and have huge experiences in the developed nations. Therefore, transferring these policy instruments and measures with some modification incorporating the local policies and needs in the developing nations is crucial to enhance energy efficiency and indirectly in the reduction of CO₂ emissions from developing world. The energy efficiency policy analysis is, by nature, a trade-off among careful measurement, expert opinion and self-judgement. However, an uncertainty exists in the analysis; the overall experience and estimation cannot be ruled out since it minimizes the cost and at the same time can draw acceptable conclusions.