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Title: Evaluating Energy Efficiency Policies with Energy-Economy Models

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.
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Publication Date:
OSTI Identifier:
Report Number(s):
Journal ID: ISSN 1543-5938; TRN: US201102%%368
DOE Contract Number:
Resource Type:
Journal Article
Resource Relation:
Journal Name: Annual Review of Environment and Resources
Research Org:
Ernest Orlando Lawrence Berkeley National Laboratory, Berkeley, CA (US)
Sponsoring Org:
Environmental Energy Technologies Division
Country of Publication:
United States
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; DECISION MAKING; ENERGY EFFICIENCY; ENERGY SYSTEMS; EVALUATION; HOUSEHOLDS; MARKET; SIMULATION; TESTING Bottom-up energy-economy models, energy efficiency policy, household sector, induced technological change, policy evaluation