Publications of Ürge-Vorsatz, D.

Measuring the co-benefits of climate change mitigation

Co-benefits rarely enter quantitative decision-support frameworks, often because themethodologies for their integration are lacking or not known. This review fills in this gap by providing comprehensive methodological guidance on the quantification of co-impacts and their integration into climate-related decision making based on the literature. The article first clarifies the confusion in the literature about related terms and makes a proposal for a more consistent terminological framework, then emphasizes the importance of working in a multiple-objective-multiple-impact framework. It creates a taxonomy of co-impacts and uses this to propose a methodological framework for the identification of the key co-impacts to be assessed for a given climate policy and to avoid double counting. It reviews the different methods available to quantify and monetize different co-impacts and introduces three methodological frameworks that can be used to integrate these results into decision making. On the basis of an initial assessment of selected studies, it also demonstrates that the incorporation of co-impacts can significantly change the outcome of economic assessments. Finally, the review calls for major new research and innovation toward simplified evaluation methods and streamlined tools for more widely applicable appraisals of co-impacts for decision making.

Evaluating policy instruments to foster energy efficiency for the sustainable transformation of buildings.

Highlights: [•] All policy instruments reviewed have the potential to generate economic benefits. [•] Regulations and labels seem to work cost-effectively in many environments. [•] Voluntary agreements are comparable to standards, but need specific environment. [•] Information programs are size and design sensitive. [•] Public leadership procurement programs have hidden impacts under other instruments. [Copyright &y& Elsevier]Copyright of Current Opinion in Environmental Sustainability is the property of Elsevier Science and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Building synergies between climate change mitigation and energy poverty alleviation

Even though energy poverty alleviation and climate change mitigation are inextricably linked policy goals, they have remained as relatively disconnected fields of research inquiry and policy development. Acknowledging this gap, this paper explores the mainstream academic and policy literatures to provide a taxonomy of interactions and identify synergies and trade-offs between them. The most important trade-off identified is the potential increase in energy poverty levels as a result of strong climate change action if the internalisation of the external costs of carbon emissions is not offset by efficiency gains. The most significant synergy was found in deep energy efficiency in buildings. The paper argues that neither of the two problems – deep reductions in GHG emissions by mid-century, and energy poverty eradication – is likely to be solved fully on their own merit, while joining the two policy goals may provide a very solid case for deep efficiency improvements. Thus, the paper calls for a strong integration of these two policy goals (plus other key related benefits like energy security or employment), in order to provide sufficient policy motivation to mobilise a wide-scale implementation of deep energy efficiency standards.

Trapped in the heat: A post-communist type of fuel poverty

Fuel poverty is a still insufficiently researched social and energy challenge with significant climate change implications. Based on evidence from Hungarian panel apartment blocks connected to district heating, this paper introduces a new variant of fuel poverty that may not be properly captured by existing fuel poverty indicators. This newly defined variant can be largely attributed to post-communist legacies - though it might also exist in other contexts - and assumes that consumers living in poor-efficiency, district-heated buildings are trapped in dwellings with adequate indoor temperatures but disproportionately high heating costs because (a) changing supplier or fuel is difficult because of the existing technical and institutional constraints, and (b) they do not realistically have the option to reduce individually their heating costs through individual efficiency improvements. This situation often translates into payment arrears, indebtedness, risk of disconnection, or reduced consumption of other basic goods and services. State-supported policy responses to date have favoured symptomatic solutions (direct consumer support) combined with superficial retrofits, though it is argued that only state-of-the-art retrofits such as the passive house-based SOLANOVA pilot project in Dunaújváros can fully eradicate fuel poverty in this consumer group. © 2011 Elsevier Ltd.

Synergies between energy efficiency and energy access policies and strategies

Policies to improve energy access and energy efficiency are often discussed, designed and assessed in isolation from each other. In this paper, we highlight possible synergies in these two domains of policy making by looking specifically at some key household end uses that are the first to be met once improved access has been provided. By building in efficiency considerations at the very inception of activities aimed at improving access, effective energy supply available is potentially increased, the level of energy services that can be provided by the existing capacity and infrastructure or from existing budgets available is also enhanced, and the potential for reducing the cost for those populations for which cost has the highest consideration is also improved. In particular, we recommend two areas where policy maybe leveraged to benefit both access and efficiency objectives, first in the setting of standards, labels and codes and second coupling energy subsidies for access with rebates or grants for more efficient end use devices. © 2012 London School of Economics and Political Science and John Wiley & Sons Ltd.

Munkahelyteremtés energiahatékonysággal? Egy széleskörű, komplex, mély épületfelújítási program foglalkoztatásra gyakorolt hatásai Magyarországon

Magyarországon, a hasonló gazdasági problémákkal küzdő és kevésbé gazdag országokhoz hasonlóan, az éghajlatváltozás elleni küzdelem, súlya ellenére sem kerülhet bele a legmagasabb prioritású politikai célkitűzések közé. Viszont az ügy fontossága, valamint Magyarország politikai környezete miatt, vagyis a klímavédelemben a világon élenjáró Európai Unió részeként, nekünk is ki kell vennünk a probléma ellen való küzdelemben a részünket. Ilyen körülmények között rendkívül fontos megtalálni azokat a klímavédelmi intézkedéseket, amelyek egyszerre több gazdasági, társadalmi, politikai cél elérését mozdítják elő, a klímavédelmi hatásokon kívül. Erre a célra talán a legalkalmasabb terület az energiahatékonyság növelése, hiszen ezek járulékos hasznai sokszor sokkal nagyobbak, mint magából a klímavédelemből származók.

Bottom-up assessment of potentials and costs of CO2 emission mitigation in the buildings sector: Insights into the missing elements

The Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) has calculated and shown that, currently, the buildings sector has the largest potential for low-cost carbon dioxide (CO2) mitigation in the short to medium term from application of technological options among the sectors examined, based on bottoms'up studies. The potential estimates, however, were derived with no regard to indirect costs of CO2 mitigation, associated benefits, and non-technological options; these factors might change the magnitude of the potential and the costs associated with its implementation. The question emerges how accurate the indicators of the economic potential are according to the current IPCC method and how much they might change if all factors mentioned were taken into account. While research results are presently not sufficient to fully answer this question and quantitative analyses of non-technological options, transaction costs associated with barriers, and non-energy benefits are scarce and fragmented, this paper makes a first attempt to assess the presently available literature in the field. The paper concludes that the ballpark is right for the figures reporting the cost-effective potentials in the buildings sector; however, these assessments indeed need to be corrected by incurred transaction costs and co-benefits relevant for the particular assessment, as well as the potential of non-technological options. The paper also outlines a research agenda in the area so that a possible next Assessment Report of the IPCC can derive a more accurate estimate of the bottom-up potential of CO2 mitigation. © Springer Science+Business Media B.V. 2009.

Potentials and costs of carbon dioxide mitigation in the world's buildings

Buildings are responsible for over a third of global energy-related carbon dioxide (CO2) emissions. A significant share of these emissions can be avoided cost effectively through improved energy efficiency, while providing the same or higher level of energy services. How large is this emission reduction potential globally and how much will it cost for society to unlock it? This paper provides answers to these questions, presenting the results of bottom-up research conducted for the Intergovernmental Panel on Climate Change (IPCC), based on the assessment of 80 country- or regional-level mitigation studies throughout the world. First, the paper analyses the findings of these studies in a common framework. Then, it aggregates their results into a global estimate of CO2 mitigation potential. The paper concludes that by 2020 it is possible to cut cost effectively approximately 29% of buildings-related global CO2 emissions, the largest among all sectors reported by the IPCC, representing a 3.2 GtCO2eq. reduction. Developing countries house the largest cost-effective potential with up to 52% of building-level emissions, whereas transition economies and industrialised countries have cost-effective potentials of up to 37% and 25%, respectively. Energy-efficient lighting was identified as the most attractive measure worldwide, in terms of both reduction potential and cost effectiveness. If this potential is realised, the building-related CO2 emissions would stay constant over 2004-2030. These stabilisation levels (if achieved by all other sectors) would cancel about 3°C temperature increase over the projected period of time. © 2007 Elsevier Ltd. All rights reserved.

The electricity consumption structure and saving potential for electricity in buildings of the Hungarian tertiary sector

The tertiary sector, which is responsible for about a third of the total national electricity consumption,could be a significant contributor to energy saving and greenhouse gas mitigation targets in Hungary.For evidence-based design of such policies, it is important to understand the reasons behind the dynamics of the electricity consumption and its structure. According to the authors’ investigation, there has been no research-focused, targeted project aimed at electricity monitoring in tertiary sector buildings in Hungary as of 2006. To address this gap in knowledge, a research team at the Central European University (CEU) analyzed electricity consumption in 10 tertiary buildings in Hungary in the framework of the European project El-Tertiary (Monitoring Electricity Consumption in the Tertiary Sector). The methods used by CEU included a minimum of 2-weeks on-site measurements of lighting, major electrical appliances such as office equipment, kitchen appliances, heating, ventilation and air-conditioning (HVAC), as well as analysis of documents such as energy bills, electricity plans and energy supply contracts. In addition, a survey was conducted among the building managers. The paper details the preliminary results of the project implementation in Hungary. It investigates the electricity consumption and its composition in a set of studied buildings. It also identifies the opportunities for potential technical and behavioural electricity savings and the reasons why they are neglected by building owners or occupiers in Hungary. The results indicate significant potential for energy savings in tertiary sector buildings in Hungary. However, energy consumption is not a high priority among tertiary sector building owners and occupiers in the tertiary sector in Hungary and even the most low-hanging fruits for reducing energy consumption are often not picked up. Instead, renovations and new constructions of educational sector buildings often lead to an increase in energy consumption because more new appliances are purchased. Although the modern schools possessed more efficient electronic equipment, including liquid crystal display (LCD) monitors and florescent tubes and compact fluorescent lamps (CFLs), they were also characterized by the highest energy consumption due to the elevated number of computers and office equipment, as well as additional comfort elements, such as air conditioning and vending machines.

A new window for a new instrument: Can and will green investment schemes unlock the high efficiency potentials in Eastern Europe?

According to the latest projections, “hot air”, i.e. surplus of greenhouse gas emission (GHG) allowances compared to the Kyoto commitments, will total significantly higher amounts than projected even a few years ago. Since the compliance gaps of Annex I Parties of the Kyoto Protocol are unlikely to be fully filled by credits from the Joint Implementation and the Clean Development Mechanism, this hot air will be in high demand. In order to make these allowances palatable for public opinion, “green investment schemes” (GISs) have been proposed. GISs bring reductions in emissions, using the revenues from allowance sales. The major hypothetical advantage of GISs over flexible mechanisms (FM) is that its potentially diverse architectures could overcome the liabilities of the FMs, and could focus on the highest priorities in emission reduction in the selling countries.Several countries of Central and Eastern Europe (CEE) are considering the establishment of GISs in the European Union. Due to the large amount of hot air, GISs could provide a unique window of opportunity in these countries to finance energy-efficiency (EE). The paper first demonstrates why GISs should focus on EE, especially on investment in buildings. Next, the paper warns that the majority of potential GIS architectures will not accommodate EE investments, and therefore it is essential that such a scheme is optimised to leverage EE opportunities already on the drawing board. The paper reviews briefly the potential components of GISs, evaluates them from the perspective on their potential leverage on EE investments, and suggests alternative architectures that can optimise the benefits of GISs for the selling country, as well as the planet.

An appraisal of policy instruments for reducing buildings’ CO2 emissions

The building sector currently contributes approximately one-third of energy-related CO2 emissions worldwide. It is economically possible to achieve a 30% reduction. However, numerous barriers such as financial and behavioural issues, market failures, and misplaced incentives prevent the realization of the high economic potentials. Which policy instruments are the most appropriate and cost-effective for reducing these barriers? To address this question, 20 policy instruments were assessed for their effectiveness in reducing emissions, cost-effectiveness, applicability and special conditions for success. The appraisal is based on over 60 ex-post policy evaluation reports from about 30 countries and country groups, representing best-practice examples of the application of these instruments. Appliance standards, building codes, tax exemptions and voluntary labelling were found to be the most effective policy instruments contrary to others such as Kyoto Protocol flexible mechanisms or energy/carbon taxation. The most cost-effective instruments, all achieving energy savings at negative costs for society, were appliance standards, demand-side management programmes and mandatory labelling. Since all policy instruments have limitations and only help overcome some barriers, they are most effective if combined into policy packages designed for the respective location, economy and culture

Kyoto flexibility mechanisms in EU accession countries: Will they make a difference?

What potential effect do flexible mechanisms under the Kyoto Protocol have on energy efficiency, fuel switching and the development of renewable energy sources for the eight post-communist EU Member States that accessed in 2004? These countries are chief candidates for hosting Joint Implementation (JI) projects and for participating in international emission trading, which may assist the implementation and financing of projects in these target areas. The potentials and barriers to Joint Implementation are reviewed, as well as the conditions under which international emission trading can influence the energy use of the selling country. Different strategies adopted by the host countries towards the application of these instruments, and their impact on sustainable energy development, are examined. The article concludes that the Kyoto flexibility mechanisms may play a positive, but rather limited, role in the sustainable energy development of the region, but the barriers to Joint Implementation may shift the emphasis towards transactions under the framework of international emission trading. If innovative mechanisms are tied to sustainable development goals, this may mobilize the energy-efficiency potentials of these countries. An attractive opportunity exists to achieve energy efficiency and emission reductions, utilizing the revenues from allowance sales through 'green investment' schemes. © 2007 Earthscan.

Appraisal of policy instruments for reducing buildings' CO2 emissions

The building sector currently contributes approximately one-third of energy-related CO2 emissions worldwide. It is economically possible to achieve a 30% reduction. However, numerous barriers such as financial and behavioural issues, market failures, and misplaced incentives prevent the realization of the high economic potentials. Which policy instruments are the most appropriate and cost-effective for reducing these barriers? To address this question, 20 policy instruments were assessed for their effectiveness in reducing emissions, cost-effectiveness, applicability and special conditions for success. The appraisal is based on over 60 ex-post policy evaluation reports from about 30 countries and country groups, representing best-practice examples of the application of these instruments. Appliance standards, building codes, tax exemptions and voluntary labelling were found to be the most effective policy instruments contrary to others such as Kyoto Protocol flexible mechanisms or energy/carbon taxation. The most cost-effective instruments, all achieving energy savings at negative costs for society, were appliance standards, demand-side management programmes and mandatory labelling. Since all policy instruments have limitations and only help overcome some barriers, they are most effective if combined into policy packages designed for the respective location, economy and culture.

Is there a silver bullet? A comparative assessment of twenty policy instruments applied worldwide for enhancing energy efficiency in buildings

While the commercial and domestic building sectors account for 33 % of all energy-related CO2 emissions worldwide, approximately 30 % of this energy consumption can be saved economically. However, numerous barriers such as hidden costs and benefits, distorted energy pricing, imperfect information, market failures and misplaced incentives prevent the realization of these energy saving potentials. For this reason, countries apply a variety of policy instruments such as building codes, energy efficiency obligations, subsidies and information campaigns. Since these instruments differ considerably in terms of their effects and costs, a research project conducted under the framework of the Fourth Assessment Report of the Intergovernmental Panel on Climate Change has reviewed more than 60 ex-post policy evaluation reports for the 20 most commonly used policy instruments from app. 30 countries worldwide. The paper presents the results of this exercise regarding the environmental effectiveness and cost-effectiveness of these instruments, as well as identifies special conditions for their success.While most policy instruments achieved significant energy savings, appliance standards, building codes, tax exemptions and labelling were revealed as most effective policy instruments. Other instruments such as Kyoto Protocol flexible mechanisms or taxation have been less successful in the building sector. Several policy instruments achieved energy savings at negative costs for society; most cost-effective in our sample were appliance standards, demand-side management programs and mandatory labelling. Since no single policy instrument can capture the entire potential for energy-efficiency, buildings require a diverse portfolio of policy instruments for effective energy use reductions and for taking advantage of synergistic effects.

Municipalities and energy efficiency in countries in transition: Review of factors that determine municipal involvement in the markets for energy services and energy efficient equipment, or how to augment the role of municipalities as market players

Abstract: It is widely recognized that many cost-efficient opportunities to employ end-use energy efficiency measures exist in countries in transition (CITs) and that municipal authorities have an essential role to play in capturing these opportunities. The aim of this paper is to review the factors that determine the degree of involvement of local authorities in the market for energy services and energy efficient (EE) equipment in three CITs: Bulgaria, Hungary and the Former Yugoslav Republic of Macedonia (hereafter: Macedonia). We achieve this aim by examining the current status of local governments as the most powerful determinant of municipal market involvement. Two broad groups of factors are discussed: statutory obligations and powers of local governments, especially energy-related tasks, and finance. We explain how specific features within these two areas may influence the motivation of local authorities to improve energy efficiency and their capacity to do so. We argue that greater decentralization is the first step in augmenting the role of local authorities in the market for energy services and EE equipment. Based on the analysis we give recommendations on how to encourage municipal authorities to use market mechanisms more extensively to deliver energy efficiency