An ex-ante evaluation of a White Certificates scheme in The Netherlands: A case study for the household sector

Abstract

Increased efficiency of energy demand is generally recognized as a very cost-effective strategy to reduce energy requirements and the related environmental impacts (e.g. the greenhouse effect). In order to improve energy efficiency the use of innovative market mechanisms, such as the White Certificates (WhC), has been proposed. The basic idea underlying this policy instrument is that specific energy saving targets are set for energy suppliers or energy distributors. These requirements must be fulfilled in a predefined time frame. The focus of this paper is on the effect on energy efficiency improvement, on the behavior of the end consumers and the market of energy efficiency measures. Furthermore, we study the possible effects of WhC in The Netherlands by means of a theoretical analysis and an empirical bottom-up model. We compare concrete energy efficient technologies in terms of cost-effectiveness and energy efficiency improvement. In combination with existing Dutch policies for energy efficiency improvement in the built environment, the contribution of this innovative scheme could enhance the accomplishment of energy efficiency targets. In this paper, two packages of energy saving measures of a WhC scheme are studied for Dutch households. The costs of these technologies are estimated through the use of different discount rates, which imply overcoming of the market barriers through the use of the WhC. A scheme that includes all available technologies as flexible options appears as a realistic solution and can generate cost effectively up to 180 PJ primary energy savings and 4550 Mh cumulative net savings in the year 2020, at a discount rate of 5%, under the precondition that the policy and administrative costs can be kept low. r

Implications of an energy efficiency obligation scheme for the Swedish energy-intensive industries: an evaluation of costs and benefits

“…Oikonomou et al (2007) did an ex-ante evaluation of a white certificates scheme for the Dutch residential sector. Fraunhofer ISI et al (2012) investigated the costs and benefits of various policy schemes for energy savings in Germany.…”

On the Road to a Unified Market for Energy Efficiency: The Contribution of White Certificates Schemes

“…Note that the representative agent portray prevents 10 The energy efficiency good can be considered as the difference between a conventional and an efficient equipment, whose cost is the differential between them. In Oikonomou et al (2007), a conventional energy consuming durable is explicitly in trade-off with an efficient one. But this does not change significantly the representation nor the results.…”

“…A set of works converge towards a stylized representation of white certificates schemes (Bye and Bruvoll, 2008;Giraudet and Quirion, 2008;Oikonomou et al, 2007Oikonomou et al, , 2008Oikonomou et al, , 2009Peerels, 2008;Sorrell et al, 2008). Based on similar partial equilibrium models operating under perfect rationality, perfect information and perfect competition assumptions, those papers generally depict the markets for two goods: energy E and energy efficiency EE.…”

Tradable white certificate schemes: what can we learn from tradable green certificate schemes?

“…Finally, a TWC scheme should broadly use labeling of energy efficiency products and deposit refund schemes 18 because they can overcome knowledge and other nontechnical barriers. Some studies have dealt with the issue of interactions of TWC with other policy instruments, where more concrete lessons are to be drawn (Bertoldi et al 2005;Farinelli et al 2005;Harrisson et al 2005;Oikonomou et al 2007b;Oikonomou and van der Gaast 2008).…”