No-regret potentials in energy conservation : an analysis of their relevance, size, and determinants

(2) Do existing estimates of the no-regret potential stand up to are-evaluation within this framework? As a result of this analysis the size of previous estimates for no-regret potentials may be modified - in terms ofenergy savings or in financial terms. On the basis of these findings, we will approach the overriding third research question: (3) How large is the no-regret potential and what determines its size? The following chapter will provide a fuller account of the debate on no-regret potentials. This will be complemented by a detailed theory-based definition of no­ regret potentials in Chapter 2. The thesis will focus mostly on the micro-level of analysis. But we will also address the implications ofour findings for the analysis ofenergy saving measures and policies at more aggregate levels, notably within a feasibility study for adapting a model which represents the level of the national economy. The debate on no-regret potentials­ 1 origin, context, issues The term "no-regret potentials" was coined during the debate on climate change. It designates opportunities for the reduction of greenhouse gas (GHG) emissions ". . . that are worth undertaking whether or not there are climate-related reasons for doing so. " (IPCC 1996, p. 271). In the IPCC's Third Assessment Report (TAR), no­ regret potentials are increasingly equated with GHG emission reduction potentials at negative (net) costs (lPCC 2001, p. 21). "The climate change debate has stimulated a controversy on the existence and size of potentials to reduce energy consumption at an economic benefit, so-called no-regret potentials. This book develops a theoretical evaluation framework with particular focus on transaction costs and real option theory. The resulting typology of no-regret potentials serves to re-evaluate the no-regret potential inherent in highly efficient electric motors, and in energy service contracting. Both case studies confirm the existence of no-regret potentials, even if they indicate a certain spread of results around the original estimates. The book concludes with perspectives for deriving more aggregated model-based results."--BOOK JACKET

The climate change debate has stimulated a controversy on the existence and size of potentials to reduce energy consumption at an economic benefit, so-called no-regret potentials. This book develops a theoretical evaluation framework with particular focus on transaction costs and real option theory. The resulting typology of no-regret potentials serves to re-evaluate the no-regret potential inherent in highly efficient electric motors and in energy service contracting. Both case studies confirm the existence of no-regret potentials, even if they indicate a certain spread of results around the original estimates. The book concludes with perspectives for deriving more aggregated model-based results.

Front Matter....Pages I-XVI Front Matter....Pages 1-1 The debate on no-regret potentials —origin, context, issues....Pages 5-20 The issues of the no-regret controversy....Pages 21-33 Front Matter....Pages 35-35 The standard theory of market failure....Pages 43-76 Transaction cost economics....Pages 77-99 Investment appraisal....Pages 101-144 Complementary perspectives on the no-regret potential....Pages 145-176 Theoretical conclusions — A typology of no-regret Potentials....Pages 177-185 Front Matter....Pages 187-187 Case study of electric motors....Pages 195-252 Case study of “Contracting”....Pages 253-326 Generalisation of case study results....Pages 327-360 Back Matter....Pages 361-407