Evaluating Energy Efficiency Policies with Energy-Economy Models

Journal Article · Sun Aug 01 04:00:00 EDT 2010 · Annual Review of Environment and Resources

DOI:https://doi.org/10.1146/annurev-environ-052810-164840· OSTI ID:1001644

Mundaca, Luis; Neij, Lena; Worrell, Ernst; McNeil, Michael A

The growing complexities of energy systems, environmental problems and technology markets are driving and testing most energy-economy models to their limits. To further advance bottom-up models from a multidisciplinary energy efficiency policy evaluation perspective, we review and critically analyse bottom-up energy-economy models and corresponding evaluation studies on energy efficiency policies to induce technological change. We use the household sector as a case study. Our analysis focuses on decision frameworks for technology choice, type of evaluation being carried out, treatment of market and behavioural failures, evaluated policy instruments, and key determinants used to mimic policy instruments. Although the review confirms criticism related to energy-economy models (e.g. unrealistic representation of decision-making by consumers when choosing technologies), they provide valuable guidance for policy evaluation related to energy efficiency. Different areas to further advance models remain open, particularly related to modelling issues, techno-economic and environmental aspects, behavioural determinants, and policy considerations.

• Research Organization: Ernest Orlando Lawrence Berkeley National Laboratory, Berkeley, CA (US)
• Sponsoring Organization: Environmental Energy Technologies Division
• DOE Contract Number: AC02-05CH11231
• OSTI ID: 1001644
• Report Number(s): LBNL-3862E
• Journal Information: Annual Review of Environment and Resources, Journal Name: Annual Review of Environment and Resources; ISSN 1543-5938
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
Bottom-up energy-economy models
energy efficiency policy
household sector
induced technological change
policy evaluation
DECISION MAKING
ENERGY EFFICIENCY
ENERGY SYSTEMS
EVALUATION
HOUSEHOLDS
MARKET
SIMULATION
TESTING