Page 20 - Driving Force for Energy Demand
P. 20
ving Forces for Energy Demand 2010
Removal of barriers to behavioural change: Demand-side energy efficiency
improvements form a large share of low-cost options for carbon abatement;
but consumers and producers often fail to take up options already highly
cost-effective at current energy prices. There is therefore a need, even with
emissions pricing, for well-designed and targeted regulatory measures to
gradually eliminate these barriers. Such measures include minimum
standards for buildings and appliances; labelling, advertising and providing
information and subsidising selected energy efficiency investments (Pezzey,
Jotzo, & Quiggin, 2007).
Minimise carbon leakage: Carbon leakage is higher emissions and output
from foreign competitors not subject to emission pricing, which thus causes
domestic economic pain in those sectors, for little global environmental
gain. Currently border adjustments (taxes on imports from, and rebates for
exports to competing, uncontrolled countries) are well-established and
efficient ways of preventing leakages for other commodities (Pezzey, Jotzo,
& Quiggin, 2007).
Market pricing of emissions is still in its infancy, however as seen in 3-2, several
markets have been established although with limited effect on emissions so far.
3-2 Evolution of Size and Price in Various Carbon Markets
(Zerriffi & Wilson, 2010)
Research into EU's carbon trading scheme has shown that although there were
many problems in the first phase, emission cuts were achieved in a cost-effective
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 20
Removal of barriers to behavioural change: Demand-side energy efficiency
improvements form a large share of low-cost options for carbon abatement;
but consumers and producers often fail to take up options already highly
cost-effective at current energy prices. There is therefore a need, even with
emissions pricing, for well-designed and targeted regulatory measures to
gradually eliminate these barriers. Such measures include minimum
standards for buildings and appliances; labelling, advertising and providing
information and subsidising selected energy efficiency investments (Pezzey,
Jotzo, & Quiggin, 2007).
Minimise carbon leakage: Carbon leakage is higher emissions and output
from foreign competitors not subject to emission pricing, which thus causes
domestic economic pain in those sectors, for little global environmental
gain. Currently border adjustments (taxes on imports from, and rebates for
exports to competing, uncontrolled countries) are well-established and
efficient ways of preventing leakages for other commodities (Pezzey, Jotzo,
& Quiggin, 2007).
Market pricing of emissions is still in its infancy, however as seen in 3-2, several
markets have been established although with limited effect on emissions so far.
3-2 Evolution of Size and Price in Various Carbon Markets
(Zerriffi & Wilson, 2010)
Research into EU's carbon trading scheme has shown that although there were
many problems in the first phase, emission cuts were achieved in a cost-effective
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 20
