Design and Evaluation of Policy Instruments for Energy Efficiency Market

The concept of energy efficiency market as basis for energy efficiency policy making enables better understanding of the overall environment where policy needs to be implemented. Based on the market assessment, policy makers are faced with the challenge of designing policy instrument that will release identified brakes to energy efficiency. Following the market assessment, the framework for design of policy instruments and measures needs to be established. It uses a theory-based approach to provide the insight in the supposed operation of an instrument or measure and integrates the evaluation of impacts already in the design phase. In this paper, the authors categorized policy instruments in several categories and additionally described which side of the market they address and in which typical development stages of the market development their application is the most needed. For every step in the process, indicators are defined and success or failure values of these indicators determined. This approach can give clear picture to the policy makers what needs to be monitored and evaluated ex post. This ex post evaluation will enhance the knowledge of instrument's operation. In this paper, the authors established a detailed theory (theory-based approach) on how the instrument is supposed to work. Although this theory-based approach is known and utilized in project management, it is not mainstreamed in energy efficiency policy.