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Evaluating energy efficiency policies with energy-economy models

  • Luis Mundaca
  • Lena Neij
  • E. Worell
  • M. McNeil
Publishing year: 2010
Language: English
Pages: 305-344
Publication/Series: Annual Review Environment and Resources
Volume: 35
Document type: Journal article review
Publisher: Annual Reviews

Abstract english

The growing complexities of energy systems, environmental problems,

and technology markets are driving and testing most energy-economy

models to their limits. To further advance bottom-up models from

a multidisciplinary energy efficiency policy evaluation perspective, we

review and critically analyze bottom-up energy-economy models and

corresponding evaluation studies on energy efficiency policies to induce

technological change. We use the household sector as a case study.

Our analysis focuses on decision frameworks for technology choice,

type of evaluation being carried out, treatment of market and behavioral

failures, evaluated policy instruments, and key determinants used

to mimic policy instruments. Although the review confirms criticism

related to energy-economy models (e.g., unrealistic representation of

decision making by consumers when choosing technologies), they provide

valuable guidance for policy evaluation related to energy efficiency.

Different areas to further advance models remain open, particularly related

to modeling issues, techno-economic and environmental aspects,

behavioral determinants, and policy considerations.


  • Social Sciences Interdisciplinary
  • Policy evaluation
  • Technology choice determinants
  • Policy instruments
  • Household sector
  • Induced technological change


  • ISSN: 1545-2050
Lena Neij
E-mail: lena [dot] neij [at] iiiee [dot] lu [dot] se

International Institute for Industrial Environmental Economics (IIIEE)

Lund University P.O. Box 196, 22100 Lund, Sweden
Visiting Address: Tegnérsplatsen 4,Lund

Telephone: + 46 46 222 00 00 Fax: + 46 46 222 02 10