The authors document three remarkable features of the Opower program, in which social comparison-based home energy reports are repeatedly mailed to more than six million households nationwide. First, initial reports cause high-frequency "action and backsliding," but these cycles attenuate over time. Second, if reports are discontinued after two years, effects are relatively persistent, decaying at 10-20 percent per year. Third, consumers are slow to habituate: they continue to respond to repeated treatment even after two years. The authors show that the previous conservative assumptions about post-intervention persistence had dramatically understated cost effectiveness and illustrate how empirical estimates can optimize program design.
The policy summary for this paper is available here.
This year’s report includes an in-depth look at energy efficiency developments in the transport sector and in finance. Huge new waves of demand for mobility are emerging in OECD non‑member economies, bringing with them the challenges of pollution and congestion already faced in OECD countries. Fuel-economy standards and other policies are expected to help shape the market for more energy-efficient vehicles in the years to come. In financial markets, energy efficiency is becoming an important segment in its own right, aided by a growing range of financial products. This report documents the growing scale and diversity of energy efficiency products and actors.
Finally, this report reviews national energy efficiency market developments in various jurisdictions around the world, including Canada, China, the European Union, India and Italy. These case studies provide snapshots of specific energy efficiency sub-markets, and insights into how these markets may evolve in the coming years.
For more than a century and a half, the world’s economies, industries, and even financial sectors have developed around relatively cheap, readily available fossil fuels and abundant land. Governments and corporations have invested trillions of dollars in fossil fuel and land development, and nearly every economic sector in every country is affected by the cost, reliability, and availability of energy derived from fossil fuel. This study focuses on the four fossil fuel industries - oil, coal, natural gas, and fossil fuel electricity generation - evaluating the potential impact that a transition to a low-carbon economy might have on investors, consumers, producers, and governments and, crucially, how policy can shape that impact. Through a series of modeling exercises that detail potential transition mechanisms, it shows that policy is the main determinant of winners and losers. Based on this concept, this paper summarizes the main findings from this analysis, drawing the main lessons from each of the four separate analyses of global and national oil, coal, gas, and fossil fueled power industries.
The benefits of hydropower as a source of clean energy with low greenhouse gas emissions are in stark contrast with its negative local social and environmental impacts. This briefing paper discusses this contradiction and the rising importance of affordable clean energy from hydropower in emerging and developing economies. Since hydropower is back on the development agenda this momentum should be used to invest in more environmental and social friendly schemes.
This paper presents three individual cases of a wind turbine producer, a wind farm and a wind blade producer to illustrate how foreign collaboration and technology, choice of deployment strategy, and government policy have influenced the sector to continually improve its technology. The findings indicate that foreign technology and collaboration have had a significant role in helping wind energy technology to develop in China, and were also key elements in stimulating indigenous innovation when high prices held the domestic wind market back from massive expansion. While public policy has played a key role in many aspects of the development of the innovation path, the long-term, enduring goal of developing the required technology was the essential driver. The development of the wind sector occurred alongside the economic development and social improvement of the nation. Thus, while it may be too soon to predict the future path of innovation for Chinese wind energy technology, an emphasis on research and development and increasing international competition is a trend that is likely to continue.
In the first dispute on renewable energy to come to World Trade Organization (WTO) dispute settlement, the domestic content requirement of Ontario’s feed-in tariff was challenged as a discriminatory investment-related measure and as a prohibited import substitution subsidy. The panel and Appellate Body agreed that Canada was violating the GATT and the TRIMS Agreement. But the SCM Article 3 claim by Japan and the European Union remains unadjudicated, because neither tribunal made a finding that the price guaranteed for electricity from renewable sources constitutes a ‘benefit’ pursuant to the SCM Agreement. Although the Appellate Body provides useful guidance to future panels on how the existence of a benefit could be calculated, the most noteworthy aspect of the new jurisprudence is the Appellate Body’s reasoning that delineating the proper market for ‘benefit’ analysis entails respect for the policy choices made by a government. Thus, in this dispute, the proper market is electricity produced only from wind and solar energy.