Trends, Investment Behaviour and Policy Design
Edited by Raymond J.G.M. Florax, Henri L.F. de Groot and Peter Mulder
Chapter 10: Effectiveness of Energy Policies in the Service Sector
Kornelis Blok, Suzanne Joosen and Mirjam Harmelink 1 INTRODUCTION Many governments have implemented policies to limit energy use in response to the threat of climate change. International agreements with quantified emission limitation and reduction targets for greenhouse gas emissions force governments to be critical about the actual effects of such policies. In addition, limited government budgets force governments to be cautious in terms of the introduction of policies associated with a substantial financial burden. Therefore, when evaluating climate policies, the two following questions have become important. First, are the policies effective, that is, to what extent do the policies lead to emission reduction? Second, are the policies cost-effective; in other words, do the policies lead to emission reduction at a level of cost that is acceptable to the government? Policy evaluation in the area of energy and environmental issues is widely applied, but by and large it focuses more on the analysis of policy processes than on the determination of the quantitative impact of policies. In this analysis, the evaluation approach we select is the so-called theorybased evaluation (see, for instance, Rossi et al., 2004), an approach that has been widely applied for policy analysis in general, but as of now not very frequently in the context of the analysis of energy and climate policies (Blumstein et al., 2000). The main advantage of theory-based evaluation is that it goes through the full cause–effect chain. This makes it possible not only to determine whether policies are effective or not, but...
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