Plugging the gap in energy efficiency policies: The emergence of the UK 'Carbon Reduction Commitment

Haney, Aoife Brophy, Grubb, Michael and Wilde, James (2009) Plugging the gap in energy efficiency policies: The emergence of the UK 'Carbon Reduction Commitment. European Review of Energy Markets, 3 (2). pp. 33-62.


This paper investigates energy efficiency policies in the UK with particular reference to the business and public sectors. There are a number of instruments already in place that aim to improve energy efficiency in these
sectors as part of wider UK climate change policy. These instruments have, however, failed to address key barriers to uptake that are specific to large, less-energy-intensive companies and public sector organisations – light
manufacturing and the “service sector”. In this paper, we tell the story of how policy has evolved to plug this gap between barriers to and policy instruments for energy efficiency.
We firstly set the context for energy efficiency in the business and public sectors in terms of existing policy and the potential for carbon abatement. We then examine the barriers to energy efficiency and map these against the
main policy instruments. Our analysis clearly illustrates the need for a different approach if the potential for improving energy efficiency is to be realised. We discuss the features of the main proposal for providing this new approach: a consumption-based cap-and-trade scheme. We then trace
its path from concept through to policy design to what is now known as the Carbon Reduction Commitment (CRC). We conclude by evaluating the importance of the CRC, due to commence in 2010, in contributing to costeffective
emissions reduction and security of supply in the UK.

Item Type: Article
Keywords: innovation, energy efficiency, business and public sectors, climate change, carbon reduction, electricity
Subject(s): Innovation
Date Deposited: 07 Feb 2018 15:36
Last Modified: 07 Feb 2018 15:36
Funders: N/A

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