Vlasis Oikonomou

A Qualitative Assessment of EU Energy Policy Interactions

Abstract The aim of this article is the presentation of the Energy and Climate Policy Interactions decision support tool for assessing qualitatively ex-ante combinations of various energy and climate policy instruments. This tool integrates six methodological steps, wherein a policymaker can intervene and set preferences that affect the outcome of policy interactions. The advantage of this approach is that it demonstrates to some extent the qualitative effects of interacting policy instruments, depending on the current policy goals and preferences of users.

Combination of Energy Policy Instruments: Creation of Added Value or Overlapping?

In this article we present an application of the energy and climate policy Interactions (ECPI) decision support tool for qualitative ex-ante assessment of 21 combinations of energy policy instruments. Considering the weight given to each criterion of ECPI, we reached an overall result that policy instruments are considered quite fungible as regards their integration to an overall energy policy mix. Interactions of policy instruments for increasing renewable energy sources utilization with energy efficiency improvement and climate change mitigation instruments present a substantial added value compared to their stand-alone implementation.

White certificates and domestic offset schemes: possible synergies

Next to energy efficiency, in the context of GHG reductions, additional policy mechanisms to the incumbent EU Emissions Trading scheme (EU ETS) are discussed. Such is the case of Non-ETS Domestic Offset (DO) schemes, which can reduce CO2-eq.emissions in the non-ETS sectors and trade these as CO2 credits on the ETS market. Taking into account that the EU’s “Linking Directive” (EC 2004) creates the conditions to use credits generated by emission reduction projects certified by the UN Framework Convention on Climate Change Kyoto Protocol (KP) within the EU ETS market, in this paper we employ the institutional analysis method of interactions in order to provide insight of a combined White Certificates (WhC) and DOs cheme. Special attention is paid to the parameters that seem to hamper harmonization of WhC and DO. Aim of this paper is to discuss whether smart market- based instruments, such as WhC, can be complementary to the effectiveness of mechanisms fostering energy efficiency such as DOs projects and vice versa. In this respect, the potential combined scheme is assessed (ex-ante) with the help of standard criteria that refer to the triptych energy, environment & society. Given the outcome of the study made, it is fair to say that such a DO/WhC combined scheme could be selected if the additionality concern is to minimize short term social costs of reaching a certain goal. However recent information and research conducted so far cannot yet uphold an ambition that a WhC/DO scheme of this kind could also drive technical change, keep consumer costs down and be equitable.

Integrating Environmental, Sociopolitical, Economic, and Technological Dimensions for the Assessment of Climate Policy Instruments

Climate policy assessments often appear to lack a multi-analytical approach capable of considering different dimensions of sustainability during policy design. This paper presents an integrated assessment framework of climate policy instrument interactions by reconciling environmental, socio-economic, political, and institutional aspects for the initial stage of policy development. Selected interacting policy instruments are categorized into their policy design characteristics, referring to parameters that describe the institutional context of each instrument. Criteria covering specific environmental, sociopolitical, macroeconomic, financial, and technological objectives for assessing the policy instruments are identified and selected. Complementarities and overlaps between different combinations of instruments are identified. These affect subsequently the likely values (scores) of policy instruments against the evaluation criteria. By applying an interactive weighting method, policy makers are able to assign weighting factors on the criteria expressing their perceptions and objectives. An overall assessment of combined instruments from these steps is therefore determined based on the input from policy makers. We found that the developed framework provides a transparent tool to stakeholders capable of highlighting potential synergies and conflicts between environmental, socio-economic, political, and technological criteria during the stage of climate policies design. The method merits further attention in group decision-making for mapping stakeholders’ preferences with diverse objectives.

Domestic Offsets in Practice: Modalities and Implications

Greenhouse gas (GHG) reduction projects implemented at European Union Member States in non-Emissions Trading Scheme (ETS) sectors are referred to as domestic offset (DO) projects. The aim of this article is the presentation of DO projects implementation modalities, their interactions with subsidy programs and the analysis of impacts on their financial profile. This article argues that although DOs would not bring EU Member States closer to their Kyoto Protocol targets, they could enhance the roll-out of new low-carbon technologies which would result in extra energy and GHG reduction gains on top of the carbon credits that link DOs to the EU ETS.