The Sky is the Limit! Or Why Can More Efficient Appliances Not Decrease the Electricity Consumption of Dutch Households

Abstract

In The Netherlands, the only energy carriers playing a significant role in households are natural gas and electricity. Natural gas is mainly used for space heating, hot water production and cooking, whereas electricity is used for appliances and lighting. Prognoses indicate that the total residential electricity consumption will rise continuously. In this paper, the impact of policy instruments on the development of electricity consumption in the Netherlands is investigated. First, a brief overview of policy efforts over the last two decades is given. It appears that the main focus of these policy instruments is on restricting the natural gas consumption rather than electricity consumption. Next, recent policy initiatives are discussed. Special attention is given to the effects of energy rebates granted on A-labelled appliances. The subsidy effectiveness as well as the total impact on CO2 emissions are determined by means of model calculations. Finally, some remarks are made with respect to the feasibility and unfeasibility for limiting the growth of electricity consumption. Part of the factors responsible for the growth of the residential electricity consumption, such as disposable income, composition of population and life style factors, are beyond the reach of policy makers. However, the energy labelling system offers some good opportunities on condition that it is upgraded regularly. Nevertheless, even at best it is unlikely that the labelling of appliances solely will be able to bring about a turnover in the growth of residential electricity consumption.