Profiting from negawatts: Reducing absolute consumption and emissions through a performance-based energy economy |
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Authors: | Julia K Steinberger Johan van Niel Dominique Bourg |
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Affiliation: | 1. IPTEH, Quartier Sorge-Bât. Amphipôle, University of Lausanne, CH-1015-Lausanne, Switzerland;2. Institute of Social Ecology, Klagenfurt University, Schottenfeldg. 29, A-1070 Vienna, Austria;3. CREIDD, University of Technology of Troyes, 12 rue Marie Curie, BP 2060, 10010 Troyes Cedex, France |
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Abstract: | Current energy and GHG emissions policies either focus directly on emissions or promote renewable production and the implementation of specific efficiency measures. Meanwhile, the fundamental structure of the energy market based on profits through energy throughput remains largely unchallenged. This policy oversight prevents the transition to an energy economy in which profits are based on energy services delivered at the lowest energy cost: a performance-based energy economy (PBEE). The PBEE applies the combined concepts of the performance economy and energy services to the energy sector. Energy Service Companies (ESCOs) are discussed as an example of PBEE practices. The implications for energy suppliers and consumers as well as the conditions for PBEE diffusion and consequences for technological change are also explored. The expected environmental, social and economic benefits are described. However, absolute consumption and emissions reductions may prove elusive due to the rebound effect. In order to forestall rebound-led increases, complementary policy measures likely to lead to absolute reductions are required. |
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Keywords: | Performance contracting Energy consumption Demand-side management |
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