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Transcript of Energy Policy The European Dimension ESRC Energy Research Conference Policy Studies Institute....
Energy PolicyThe European Dimension
ESRC Energy Research Conference
Policy Studies Institute. London, March 31, 2003.
Prof. Aviel Verbruggen
University of Antwerp (UA-STEM)
Contents
1. The ‘European Dimension’2. Sustainable Development &
Markets3. Energy Security and Policy Focus4. Changing Research Agenda5. Policy Making Capabilities
EU Policy Making
Council of Ministers
EU Parliament
EUCommission
Market CredoInd. lobbyists
Societal lobbyism
Nationalinterests
Directives: implementation by Member States
EU Energy Policy Making
InternalMarket &
Competition
EU Energy Policy
SustainableDevelopment
Accomodate different (opposite)
interests
Definition of Sustainable Development
Meet the needs of the present + allow future generations to meet own needs
•Welfare growth for the poor•Redistribution of natural resources in a fair way
•Populations•Accumulation of wealth
•Use of natural resources•Destination of investments•Technological development•Institutions
Goal
Change
Growth Control
Redistribution
Sust.Dev. : 4 Dimensions
Environ-ment
Social
(Democracy)
Economics
Sustainable Development Challenges answered by Energy Policy
Sustainable Devel.
Redistribution
Resource use
Investments
Technology
Institutions
Energy Policy Answers
Wealth growth first + aid programmes
Promote Energy EfficiencyEnergy Taxes (?)
Subsidies for Renewables,CHP, etc.
R&D Renewables, Efficienttechniques
Markets bring salvation
Competition and regulation
UnbundleFunctions
Trans-parancy
Regulationby Function
Harmon-ising
Competition
Energy Security=
Energy SUPPLY security
Shift from Central fossil-nuclear Supply to• renewable solutions• distributed resources• energy demand reduction
is taking off slowly
“Energy Security = Guaranteed Services”
When?
Fossil-nuclear Demand Reduction
Energy use = {number of people}. {GDP/capita}.{energy/GDP}
Demand Reduction = [growth control]. [conservation].[energy efficiency]
Conservation is positive (less traffic jams, stress, obesity, ...) or negative (curtailed aspirations, redistribution discussions, ...)
Efficiency is always positive!
0,00
0,02
0,04
0,06
0,08
0,10
0,12
0,14
0,16
0,18
0,0 0,2 0,4 0,6 0,8 1,0 1,2
Electricity intensity (kWh per $US GDP)
Ele
ctri
city
pri
ce (
wei
gh
ted
ave
rag
e in
du
stri
al a
nd
do
mes
tic)
$/k
Wh
Denmark
Czech RepublicPoland
United States
Belgium
Switzerland
Japan
Slovakia
OECD (1998) Demand Curve for Electricity Efficiency
Conclusions for Energy Policy
• Energy Efficiency requires Long-term TAX POLICY
• Energy BILLS remain about constant in any tax regime
• Conservation must take over when Efficiency hits the ceiling
• Growth control must follow
Technology & Politics
TechnicalFixes
HumanDimension
Politics
Efficiency
Conservation
Growth control
Conclusions Energy Research
• Energy too much the business of engineers and business economists
• The ‘human and social’ dimensions are more and more important, e.g.:*social and democratic sustainability*blueprints and back-casting*limits on wealth hoarding*preserving cultural diversity, etc…
Energy Public Policy Capabilities
• Regulatory Capabilities
• Public Energy Agencies
• Independent Expertise
• Public Dialogue … uneven and … far too weak in most EU nations