Energy efficiency: the challenges of policy design

Abstract

This article is about the choice of policy instruments to promote electricity-efficient household appliances and office equipment. We analyse the design process of the energy-efficiency policies implemented by Canada, Denmark, the United States, Sweden and Switzerland from 1973 to 1996. The results of this comparative study suggest that a policy instrument is adopted (1) if the degree of coercion involved is compatible with the party ideology of the ruling majority, (2) if a specialized administrative institution already exists, which helps to minimize the costs of implementation, (3) if other political or administrative jurisdictions have already applied it with success and if the transfer of their experiences is desirable or necessary, or (4) if the groups which are targeted are not opposed to it. Finally (5), its adoption also depends on the structure of the market and the speed of technological developments affecting household appliances and office equipment. In conclusion, we recommend taking account of these considerations in designing new energy-efficiency policies at both national and international levels.