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Downloads / Covenants

Effectiveness energy covenants: International evidence

Matthijs De Jong, Erasmus University Rotterdam Several OECD countries use covenants as an important part of their policy to stimulate energy efficiency, carbon reduction and the use of renewable energy. Not much evidence, however, is present about the effectiveness of covenants. Some studies based on micro data find significant effects, others conclude that the effectiveness of covenants is questionable. This study uses yearly (1978-2006) data from 24 OECD countries at the national and sectoral level to analyze the relation between the use of covenants and energy efficiency, carbon dioxide emissions and the use of renewable energy. The database is partly based on public data and partly on a detailed inventory by the authors of the use of covenants in all OECD countries. As also taxes, subsidies and rules are included in the analysis, the study provides also evidence of the relative effectiveness of covenants. It shows that there is very little statistical evidence for the effectiveness of covenants. Many sensitivity analyses, testing all potential relevant assumptions, show that this conclusion is robust. When the covenants are separated in different classes Read more…

Categories: Academic Papers, Energy and environment, Energy efficiency, Energy modelling, Energy policy

Tags: conference 2010, Covenants, Energy in a Low carbon economy, OECD

Effectiveness energy covenants: International evidence - Paper.pdf 206.58 KBEffectiveness energy covenants: International evidence - Presentation.pdf 405.49 KB
22nd
Sep
2010
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