National strategies for stimulating the use of bioenergy: policy instruments in Sweden

Abstract

This study examines strategies of national energy policy, focusing on measures taken from the 1970s onwards for increasing the use of bioenergy in the Swedish energy system. Emphasis is given to analyses of how administrative policy instruments such as the Building Act, which regulates the use of natural resources, and the Wood Fibre Act have affected the woodfuel market for the district heating sector. The government can influence changes in three principal areas of the energy system: energy use, industrial structure, and energy production. The tools the government may use to exert its influence are: support to research and development, support to demonstration and information dissemination, administrative policy measures, and economic incentives. These instruments may be applied separately or in combination. Knowledge about how these instruments affect the development of the energy sector is fragmentary; it derives more from empirical observation than from analysis. A systematic evaluation of the separate and combined instruments that have been used would increase the possibility of correctly assessing the national energy policy. Nevertheless, practical experience and the analyses that do exist indicate that: (1) research and development are necessary prerequisites for developing the energy system even though results can not always be achieved in time to meet the need for fast results; (2) economic policy measures are comparatively easy to administer, and energy taxation has largely met its goals. With investment support, markets can be skewed and development can be hindered if existing technology is subsidised; (3) administrative policy instruments are cumbersome to administer and frequently do not achieve their purpose.