Energy Efficiency

, Volume 8, Issue 1, pp 129–140 | Cite as

Energy saving obligations—cutting the Gordian Knot of leverage?

  • Clemens Rohde
  • Jan Rosenow
  • Nick Eyre
  • Louis-Gaëtan Giraudet
Original Article

Abstract

Better leverage of public funding is essential in order to trigger the investment needed for energy efficiency. In times of austerity governments increasingly look at policy instruments not funded by public expenditure and energy saving obligations represent one option. Because energy saving obligations are paid for by all energy customers, the degree to which they are able to raise additional private capital for energy efficiency investments is crucial with regard to the financial burden on consumers. In this paper, we systematically assess how successful energy saving obligations were in levering capital from parties other than the obligated entities including private investors and other public bodies. We analyse three countries with substantial experience with energy saving obligations, identify the main design differences and the effect this has on the degree of leverage. We conclude that the design of energy saving obligations largely determines the degree of leverage and that that there appears to be a trade-off between high leverage and additionality.

Keywords

Energy saving obligation Leverage Financing 

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • Clemens Rohde
    • 1
  • Jan Rosenow
    • 2
  • Nick Eyre
    • 2
  • Louis-Gaëtan Giraudet
    • 3
  1. 1.Fraunhofer Institute for Systems and Innovation ResearchKarlsruheGermany
  2. 2.Environmental Change InstituteOxford UniversityOxfordUK
  3. 3.Centre International de Recherche sur l’Environnement et le Développement (CIRED)Nogent-sur-Marne CedexFrance

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