Are Voluntary Approaches an Effective Energy Policy Instrument? Insights and Experiences from Europe

Panel: Panel 5. Role of Government and Programs in Industrial Energy Efficiency

Authors:
Silvia Rezessy, Central European University
Paolo Bertoldi, European Commission DG JRC
Agneta Persson, ÅF-Process A

Abstract

In the 1990s there has been a great attention and debate in the European Union and in other OECD countries on the use of voluntary agreements to attain environmental and energy goals. At the time there was a lot of theoretical analysis on this policy instrument and in particular on its effectiveness and cost-effectiveness. However, before the debate was over, a number of important voluntary policy actions were implemented both at the European level, and at national level. These voluntary measures cover equipment (e.g. cars, motors, white goods, etc.), industrial processes, and industrial energy management policies and practices. The paper presents the highlights of the debate on voluntary agreements, reviews and analyses voluntary agreements in the industrial sectors of selected European countries and focuses on some successful European experiences with negotiated agreements for improved energy efficiency of equipment and in the industrial sector, such as the European agreement on consumption of washing machines, the European agreement on power consumption in standby mode of televisions and video cassette recorders (VCRs), the European GreenLight and Motor Challenge Programs. The paper concludes that, if set up under the right institutional framework, voluntary agreements can deliver energy savings in a cost effective manner and could represent an important instrument for climate change mitigation.