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Table 5

Alternative energy efficiency funding mechanisms:

comparing SPBCs, earmarked energy taxes and government budgets

Funding source

SPBCs

Collection agency

Energy providers

Disbursement decisionmaking

Regulators & stakeholders

Disbursement decisionmaking

Evaluation criteria

Classic economics considerations

Political economy considerations

Fiscal and governance issues

Equity considerations

Static efficiency

Adequacy and stability

Political acceptance

High level of transparency & beneficiary engagement; less flexible collection and disbursement

Potential for cross-fuel price distortions; potentially less "waste"

Steady long-term funding can be locked-in

Stakeholders are supportive because of the potential to benefit

High level of transparency & beneficiary engagement; less flexible collection and disbursement

Disbursement can be targeted to affected segments; potential for regressive impacts

Potential for cross-fuel price distortions; potentially less "waste"

Steady long-term funding can be locked-in

Stakeholders are supportive because of the potential to benefit

Disbursement can be targeted to affected segments; potential for regressive impacts

Earmarked

Govern-

Special-

"Special funds"

Disbursement can

Depends on size

Steady

Stakeholders

energy

ment

purpose

could be

be targeted to

relative to GDP; less

long-term

are supportive

taxes

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