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Joel N. SwisherEnergy-Efficiency Improvements via Regulatory and Mixed Energy-Policy Options UNEP Collaborating Centre on Energy and Environment Risø National Laboratory, Roskilde, Denmark Abstract This paper discusses the theory and application of non-fiscal policy options, including standards, procurement and utility programs, to reduce energy demand and resulting environmental impacts. As the Framework Convention on Climate Change (FCCC) goes into effect, some 20 industrialised countries have made commitments to stabilise or reduce carbon emissions. To accomplish the goal of the FCCC, stabilisation of greenhouse gas concentrations, global carbon emissions should be reduced by 60% or more from present levels. At the international level, most discussion has centred on various forms of carbon emission taxes and tradable permits. At the national level, where most real energy policy changes would have to be implemented, other non-fiscal policy instruments are common. Such programs are mostly designed to capture the potential end-use energy-efficiency improvements. Lighting efficiency measures are among the most important, because 81) potential cost-effective efficiency gains are large, (2) lighting drives a large share of total electricity demand, and (3) electricity is a carbon-intensive energy source in most countries. Some non-fiscal policy mechanisms, using regulation or a mix of regulation and financial incentives, are already in widespread use, while some are more innovative and have only recently been applied to energy technologies. They include energy performance standards, technology procurement programs, utility demand-side management (DSM), as well as familiar development and demonstration activities. The application of these policies to lighting are illustrated by examples from Sweden, Brazil and the US. The barriers and risks to energy-efficiency investments, which can be overcome by these policy instruments, are also discussed. For example, energy performance standards for lighting components and systems overcome the lack of information on the part of energy users, while technology procurement helps overcome the perception of manufacturers that introducing efficient products is risky.
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