This chapter attempts to study the barriers and drivers that influence investments in EE by using an actor-oriented approach. It starts with the development of a new taxonomy of barriers and drivers by classifying them

Box 6.1 The Case of Hungary

Despite the fact that lighting usually represents only a fraction of national electricity consumption, the CFL is an ideal target for energy efficiency programmes for several reasons. When a general service incandescent lamp (GSL) is replaced by a compact fluorescent lamp (CFL), a very high energy saving potential (up to 80 per cent) can be realized while (arguably) maintaining same energy service (illumination).

Hungary has experienced one of the most remarkable market successes in the penetration of EETs, particularly in lighting. Market shares of compact fluorescent CFLs in Hungary were negligible half a decade ago. But persistent efforts to overcome several market barriers have resulted in Hungary ranking among the eight countries in Europe with the highest penetration rates. A study by Diana Urge-Vorsatz and Jochen Hauff of the Central European University, conducted in 1997 and 1999 covering 2,400 households revealed that the barriers and drivers to energy efficiency include: (a) electricity price hikes; (b) competition amongst suppliers of CFL; (c) awareness; (d) education level; (e) income; (f) age distribution; (g) size of household; (h) high first cost and (i) private funding.

A higher electricity price in Hungary was the initial driving force to start the campaign for using CFL. The resulting awareness provided a fertile ground for an increase in CFL sales after drastic electricity price hikes pressed consumers to care about their utility bills. Another key reason of the success of CFL was the fierce market competition among CFL suppliers (meso driver), which resulted in decreased prices and, hence, greater demand. The competition amongst suppliers prompted them to execute strong marketing campaigns to raise awareness and education (macro drivers). The survey revealed that the average Hungarian did not know about CFLs at the beginning of the 1990s. But in 1997, the awareness about CFLs was found to be very high among almost all population groups (based on settlement type, geographic location, gender and income level). In terms of education levels, only 6 per cent of those with no complete primary school education had a CFL while 44 per cent of all households with a college or university degree opted for CFLs. However, there was no correlation between the level of wealth and the decision to use an efficient lighting technology. It was found that geographic location plays a significant role: a household in Budapest is almost twice as likely to use a CFL as one in rural areas. This is because the highly educated are more likely to live in Budapest; it can also be attributed to the fact that CFLs, or information on them, are less easily available in rural areas.

Source: Urege-Vorsatz and Hauff 2001.

in terms of profitability and feasibility of private investments in energy efficiency. The barriers are classified into three broad categories, namely, micro, meso and macro. In practice, these barriers are of the following types:

perceptual-behavioural, financial-economic, institutional-structural and market oriented. Such classification is expected to help devise the response measures to remove, reduce or avoid the barriers. The chapter is also aimed at understanding which drivers contribute to the successful diffusion of EE measures. This would facilitate development of appropriate support mechanisms at financial, policy, institutional, regulation and information levels.

Further, using this taxonomy, the chap ter develops a theoretical framework which proposes a methodology to analyze the causal relationship between barriers/drivers and the appropriate response measures. This work brings out clearly the need for a different set of response measures, depending on which group a barrier belongs to. At the policy level, some barriers can hardly be influenced by an energy efficiency project team, and whoever encounters them has to accept them. But if the project is of a wider scope, let us say, a programme of institutional development financed by international donors, that programme may be able to modify some of the barriers. Hence, it is important to try to assess which barriers are unchangeable, and which may be worth of tackling by such programmes. This would help both, the multilateral and government agencies, in devising their strategies in terms of support to future barrier removal programmes. This analysis has profound implications for barrier taxonomy, which, in turn, helps design energy efficiency projects. The paper underlines the significance of the identification and classification of real barriers, which is a precondition for the successful diffusion of EETs.

Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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