Evaluating energy policy instruments using outcome indicators

Lena Neij, International Institute for Industrial Environmental Economics
Kerstin Åstrand, Lund University

Keywords

evaluation, policy instruments, outcome indicators, technical change

Abstract

The aim of this discussion paper is to suggest a framework for the evaluation of policy instruments designed to affect development and dissemination of new energy technologies, e.g energy efficiency technologies. The proposed evaluation approach is based on the analysis of policy outcome as a complement to the more conventional impact assessments, e.g. saved energy and emission reductions. With the suggested evaluation approach policy instruments are analysed based on selected outcome indicators. Outcome indicators allow analysis of the outcome scope, i.e. describing changes in the socio-technical energy system. The different phases of an outcome-based evaluation process are presented and the advantages and disadvantages of the proposed approach are discussed. Disadvantages associated with the approach are for example complexity, possible high cost and the requirement of qualified evaluators. Despite these shortcomings, it is argued that evaluations using outcome indicators have several advantages compared to more traditional evaluations focused on impact assessment. The main argument is that the information of the continuous performance of policy instruments and their effects on the introduction and dissemination of new energy technologies, provided by this evaluation approach, is essential for an improved adoption and implementation of energy and climate policy.