Publications of Ürge-Vorsatz, D.
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.
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.
Analysis of electricity consumption in the tertiary sector of Hungary
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 sectorbuildings 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 purcha sed. 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.
Green Investment Scheme: case study on Hungary
Recently, the concept of a Green Investment Scheme (GIS) has been developing rapidly and gained pace in 2008 when Hungary and Latvia adopted the GIS legislature and at least three more European countries prepared to follow suit. Against this background, the paper examines the Hungarian case looking into its legal framework, possible GIS architectures and the country’s actual choice regarding the modality of a Green Investmet Scheme. An overarching question is the allocation of revenues from sales of assigned amount units (AAUs). The primary focus of this paper is on the allocation of AAU revenues to the buildings sector since the latter represents one of the priority areas to be addressed in the context of climate change mitigation. On this basis, an overview of existing national and EU subsidy systems supporring energy efficiency in the Hungarian buildings sector is presented. The authors point to a complementary nature of Hungarian Green Investment Schemes which are supposed to address the projects weakly supported by other policies. In addition, the experiences of CEE countries in energy efficiency projects in buildings are reviewed to the extent which can be relevant for selecting appropriate GIS architecture modalities. Furthermore, the paper addresses the issue of similarity between JI (Track 1) and GIS projects and gives certain recommendations with regard to implementation of Green Investment Schemes in the buildings sector.
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 an enlarged EU: 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 energyefficiency 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.
Mitigating CO2 emissions from energy use in the world's buildings.
An overview of climate change mitigation opportunities in the world's buildings is presented, based on the key building-specific findings of the Fourth Assessment Report from the Intergovernmental Panel of Climate Change. Buildings and the building stock can play a major role in mitigating climate change in the short- to medium-term, since substantial reductions in CO2 emissions from their energy use can be achieved over the coming years. A significant portion of these savings can be achieved in ways that reduce life cycle costs, thus providing reductions in CO2 emissions that have a net negative cost. There are indications that the building stock has the highest share of negative- and low-cost greenhouse gas reduction potential among all sectors. Based on 80 collected national or regional studies estimating CO2 mitigation potential in five continents, the global potential for CO2 reductions through buildings is analysed and estimated. The co-benefits associated with the implementation of these measures are also substantial, helping policy-makers justify actions even in the absence of a strong climate commitment. Since the barriers to unlocking the high potentials in the residential and commercial sectors are especially strong, no single instrument can make a large impact. Instead, portfolios of targeted policies tailored to local conditions, combined with strong compliance and enforcement regimes, are needed.
Confronting climate change: avoiding the unmanageable and managing the unavoidable
Scientific Expert Group Report on Climate Change and Sustainable Development. Prepared for the 15th Session of the Commission on Sustainable Development
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
Electricity End-Use in Buildings: A Survey of New Member States and Candidate Countries
A large body of literature points to the large cost-effective energy conservation potentials in the countries that joined the European Union in April 2004, but the present understanding of the size and details of this potential is limited. Therefore, the European Commission has started a project, managed by DG-Joint Research Center (JRC), with the declared aim to develop a bottom-up end-use electricity consumption database for the building sector in the new EU member states (NMS), candidate countries (CC) and in the Western Balkans (WB). This database will contain reference data concerning electricity consumption and savings potential in buildings (both residential and commercial), a sector which is using a large amount of energy and is considered by the European Commission to be a priority sector for energy conservation policy measures.The paper presents the preliminary results of the first survey of electricity consumption and saving potential in buildings in the NMS and the CC. The paper provides the first results of JRC project on electricity end-use efficiency in buildings in NMS, CC and WB comprising an analysis of data on the installed end-use technologies (penetration rate, usage pattern, specific energy consumption, etc.), an evaluation of the corresponding electricity use and an estimate of the electricity savings potential. The key barriers and incentives to end-use electricity efficiency in buildings will be presented, together with an inventory of current polices. Based on the preliminary results of the study, the paper will present a first set of policy recommendations on how to unlock the electricity saving potential in the buildings sector of NMS and CC.Beyond summarising the present state of understanding in the area of electricity end-use data and conservation potentials in MNS and CC buildings, the paper will identify the status and potential key areas for further research which is needed for policy-making at both the EU and the NMS level for the most efficient unlocking of the sizable energy saving potential.
Energy efficiency policy in an enlarged European Union: the Eastern perspective
In May 2004 eight former communist countries of Central and Eastern Europe joined the European Union (EU), ending the era of economic transition. During the accession process their energy sectors had to undergo fundamental reforms and restructuring, and after having to adopt European legislation, the main framework of their energy policies now should be up to speed with those of the EU-15.However, the legal harmonization process was entirely one-way. How well do the present EU energy efficiency policies cater to the needs of the new member states? What is the end result of the transition and accession process in this field? What has the ambitious restructuring schedule delivered in these countries from the perspective of energy efficiency? Where are these countries in terms of energy efficiency policies today, compared to the old member states? How should EU energy and environmental policies change or be strengthened to accommodate the different settings in the accession countries?These questions were answered as a part of a study commissioned by the European Parliament and completed by the Central European University. The paper will portray the development of energy intensity during the accession process, and catalogue the policies in place today influencing the efficiency of energy use. The paper then provides recommendations on how the efficiency of energy consumption could be promoted further, and what EU-level policies could be introduced to facilitate these changes. Among other suggestions, the paper points to the importance of policy integration and the decentralisation of policy implementation to the municipal level.
Tradable certificates for energy savings: opportunities, challenges, and prospects for integration with other market instruments in the energy sector
Policy portfolios that include tradable green certificates have been introduced in several European countries to foster market-driven penetration of renewable energy sources. Another widely analysed type of market–based instrument in the energy sector is the tradable emission allowance. Recently tradable certificates for energy savings as a tool to stimulate energy efficiency investments and deliver energy savings have attracted the attention of policy makers. While such schemes have been introduced in different forms in Italy and the Great Britain and considered in other European countries, there is an ongoing debate over their effectiveness and applicability.The paper describes the concept and main elements of schemes that involve tradable certificates for energy savings (TCES) and how these have been put into practice in Italy and the Great Britain. It then compares TCES schemes with energy taxation and mandatory demand-side management (DSM) programs using a set of four criteria. Integration with green certificates and CO2 emissions trading schemes is examined and some possibilities for practical implementation are outlined.
Why Hungary? Lessons learned from the success of the Hungarian ESCO industry
2004 Summer Study in Buildings, Asilomar, California
Electricity disclosure: will It transform electricity markets?
In a regulated monopoly environment, the utility bill is often the only perceived characteristic of electricity service. With the liberalization of electricity markets, electricity becomes a product with multiple characteristics. The option of choosing between products and providers naturally creates the need for more information related to the electricity the consumer is buying. Therefore, electricity disclosure—providing the consumer with information related to the characteristics of purchased electricity—is becoming an integral component of liberalized markets.Following the footsteps of several states in the US and some other pioneers worldwide, in June 2003 the European Union adopted Directive (2003/54/EC). The directive required, among other rules and principles for the completion of the internal electricity market, mandatory disclosure of information on the origin of the electricity from suppliers. A European-wide, sixinstitute research project titled “Carbon Consciousness and Consumer Choice in Electricity” has been providing guidance for the efficient design of the European scheme. The project has studied residential and commercial consumers’ preferences (through focus groups and a large EU-wide telephone survey) towards a disclosure regime, as well as making an attempt to understand the potential impacts of disclosure.The present paper will present some of the results of the project, combined with evidence from the literature documenting the impacts of disclosure schemes worldwide, and answer the following questions. Does, or will, electricity disclosure transform electricity markets towards more environmentally sustainable ones? If we empower the consumer with information on their electricity product or supplier, will this influence their choice? Beyond the consumer effect, can disclosure transform the market through other pathways? How will disclosure interact with existing policies, such as existing voluntary markets for ‘green’ electricity? What other characteristics of disclosure make it an essential component of liberalised electricity markets?
Kyoto Flexibility Mechanisms in an enlarged EU: will they make a difference?
Many indicators and market evidence suggest that there are still sizable potentials for cost-effective investments into energy efficiency in the eight post-communist new EU member states. However, as long as the governments of these countries still struggle with economic revival and huge budget deficits, it is unlikely that a generous amount of state funds will be directed towards tapping these potentials. Market-based instruments, therefore, offer an attractive alternative to deliver energy efficiency as opposed to hard-to-obtain subsidies.A study commissioned by the European Parliament and executed by Central European University has examined, among others, the role and potential role of new economic instruments in promoting sustainable energy pathways in the new member states. The present paper explores the effect flexible mechanisms under the Kyoto Protocol may have on energy efficiency, fuel switch and the development of renewable energy sources in this region. These eight countries are chief candidates for hosting Joint Implementation projects and for participating in International Emission Trading schemes, which may assist the implementation and financing of energy efficiency, renewable energy, and fuel switching projects. The article reviews the potentials and barriers to Joint Implementation, and the conditions under which International Emission Trading can influence the energy use of the selling country. The research has also examined the different strategies the host countries chose to adopt towards the application of these instruments, and the impact of the strategies on short- and medium term energy sustainability. The paper concludes that the flexibility mechanisms may play a positive but rather limited role in the sustainable energy development of the region, and that due to the barriers to JI the emphasis may shift towards emission trading. If emission trading transactions are carried out through innovative mechanisms tied to sustainable development goals, it may play an important role in mobilising the energy efficiency potentials of these countries.
Turning down demand through electricity disclosure: are consumers ready? A survey of Hungarian residences and businesses
Consumption of energy is influenced by a multitude of factors. Beyond factors determining the demand for a specific energy service, characteristics of and attitudes to the energy product delivering the service can also strongly affect this demand. Attributes of electricity which may influence the demand for electricity services include its cost, its environmental impacts, and the social/political context. Therefore, in a liberalised electricity market, the awareness of these attributes may have an impact on the demand for electric energy services and on the choice of the electricity product delivering these services.There is increasing pressure worldwide to inform consumers about the characteristics of their electricity product by a mandatory labelling scheme, often referred to as “electricity disclosure”. However, currently there is little understanding of what attributes of their electricity products European consumers would most like to be informed about; in what form; how well they would understand and interpret factual information; and, finally, what impact such information may have on their consumption patterns and product choice. Our knowledge of this is even more limited in accession countries where markets are just opening up.The present paper will report on focus group research and interviews conducted on the attitudes of Hungarian (as a typical EU accession country) residential and business consumers to their electricity supply. The research is conducted under the framework of an EU-funded multi-country project “Consumer choice and carbon consciousness of electricity”. The aim of the present paper is to provide an answer to the questions above by gauging the understanding of Hungarians related to the environmental and social implications of their electricity product; and to provide an insight into the implications of a potential disclosure scheme on their behaviour influencing electricity demand and product choice.
Analyzing CO2 emissions mitigation by technology improvement in Central and Eastern Europe
As a legacy of the centrally planned economy, the economies in transition of Central and Eastern Europe (CEE) have a unique potential to reduce their greenhouse gas emissions through the improvement in their high energy intensities. Since much of this `low-hanging fruit' in energy-efficiency improvements can be highly cost-effective, many developed countries facing difficulties in meeting their greenhouse gas (GHG) emission targets domestically are eager to find such opportunities in the CEE region. Therefore, studies analysing the potentials and costs of carbon dioxide reduction through technology improvement in the region have come into the limelight. While there are a few excellent studies in the region aimed at analysing climate change abatement potentials, they all embark on different assumptions, methodologies and boundary conditions. It is hence difficult, if not impossible, to compare and analyse the results of these studies across different authors, countries or time horizons. Consequently, the purpose of this paper is to place four leading studies on GHG mitigation through technology improvement from the CEE region into an internationally comparable framework. Four studies were selected from three countries, Poland, Hungary and Estonia, which are all the results of major national and international efforts to assess costs and potentials of GHG reduction. The paper places their assumptions, methods and final results into a framework which enables policy-makers and project designers to compare these across geographical and technological boundaries. Since other studies from around the globe have been analysed in this framework in the literature, this paper provides a vehicle for the findings of these four studies to be compared to others worldwide. In addition, the paper highlights a few areas where similar studies to be completed in the future in the region may be enhanced by incorporating features used in GHG mitigation research in other parts of the world.
Leaking electricity? Standby power losses in Bulgarian, Romanian and Hungarian residences
Climate Technology and Energy Efficiency – Dissemination ,,Best Practice" Experience – Seminar Proceedings – Ostritz, Germany, 8 – 9 December 8001
Drivers of market transformation: analysis of the Hungarian lighting success story
Over the past 5 years, Hungary has experienced one of the most remarkable market successes in a key energy-efficiency technology: compact fluorescent lighting. While market shares of compact fluorescent lamps (CFLs) were negligible half a decade ago, today residential CFL market penetration exceeds that in many industrialised economies, ranking Hungary among the eight countries in Europe with the highest penetration rates. Since substantial efforts have been invested internationally to promote the proliferation of CFLs often with limited results, the understanding of the Hungarian success can bring us closer to an effective planning of programmes and policies designed to transform the markets of energy-efficient technologies around the world. Therefore, this paper's goal is to provide an insight into the driving forces which have contributed to this outstanding market success, and to investigate how the findings can apply in designing market transformation programmes aimed at increasing the penetration of cost-effective energy-efficient technologies internationally. The paper presents the results of nationally representative residential surveys and a large number of in-depth interviews with households, industry and other market participants. The market success is analysed in detail and differences in CFL penetration among the market segments provide an important clue for understanding which market barriers are the key in hampering market transformation, and which factors contributed to the overcoming of these barriers. The research suggests that the described market transformation occurred autonomously and rapidly. In the absence of major external influences, we attribute this market success to the combination of two key factors, among other contributing factors. First, the fierce market competition among CFL suppliers in Hungary has resulted in decreased prices and strong marketing campaigns, raising awareness substantially. This high awareness provided a fertile ground for an increase in CFL sales after drastic nominal electricity price hikes pressed consumers to start to care about cutting utility bills.Based on the findings about the various drivers of the market success the authors draw lessons for the design of effective market transformation programmes. In addition, we recommend an amendment to the commonly used taxonomy of market barriers prevailing in energy-efficient product markets.
Restructuring of the Hungarian Electricity Industry.
estructuring the monopolistic, state-owned, obsolete and polluting utility industries of post-socialist economies poses a challenge for the utility deregulation wave travelling around the world. Utility restructuring in the Central and Eastern Europe (CEE) region is unique from several perspectives, including the domination of foreign capital vs. national resources as the only feasible vehicle for a drastic change in the industry and the ambitious goals of harmonisation with the EU liberalisation schedule to accelerate accession. It is also widely expected that deregulation will help bring down world-record high energy intensities in these economies. Hungary has been the pioneer among economies in transition in unbundling, deregulating and privatising the utility industries and taking the first steps towards EU-conforming market liberalisation within less than half a decade. The first stages of privatisation and restructuring have been declared a success story in the Western media. However, what is a success story from a foreign perspective may be seen differently from other viewpoints. The article describes the process of utility restructuring in Hungary and examines its impact from the economic, environmental and policy perspectives. The article also compares the pioneer Hungarian deregulation with other CEE countries' restructuring of their energy sectors. However, the lessons to be learned from the Hungarian electricity industry restructuring are not only vital for other economies in transition but are often universally applicable
Risk perception by industrial radiographers: Hungary and the UK compared
Perceptions of risks from two groups of industrial radiographers, one from Hungary, (n = 45) and from the United Kingdom, (n = 29) were compared by the psychometric method. The comparison was made because both groups were at risk for high doses of ionizing radiation. We found the groups had similar demographic profiles but poor socio-economic conditions of Hungarians were associated with higher levels of emotional distress. Correlation HU-UK for personal and general risks were at a significant level for topics that included lifestyle and radiation risks. Perceptions of risks from radiation were small except for large personal risk from East European nuclear power plants. Knowledge of radiation risk intranationally was correlated positively with personal risk for UK radiographers and negatively for Hungarians. However, average overall risk perceptions from the same topic list for all radiographers did not differ significantly from a group (n = 1461) of UK citizens, though radiographer's risks from radiation were considerably greater. As a new lifesaving intervention it was proposed that radiation risk reduction could be achieved by genetic testing.
Drivers of market transformation towards energy efficiency: analysis of a case study
Over the past 5 years, Hungary has experienced one of the most remarkable market successes in a key energy-efficiency technology: compact fluorescent lighting. While market shares of compact fluorescent lamps (CFLs) were negligible half a decade ago, today residential CFL market penetration exceeds that in many industrialised economies, ranking Hungary among the eight countries in Europe with the highest penetration rates. Since substantial efforts have been invested internationally to promote the proliferation of CFLs often with limited results, the understanding of the Hungarian success can bring us closer to an effective planning of programs and policies designed to transform the markets of energy efficient technologies around the world. Therefore, the paper’s goal is to provide an insight into the driving forces which contributed to this outstanding market success, and to investigate how the findings can apply in designing market transformation programs aimed at increasing the penetration of cost-effective energy efficient technologies internationally.The paper presents the results of a nationally representative residential survey, and a large number of in-depth interviews with households, industry and other market participants. The market success is analysed in detail and differences in CFL penetration among the market segments provide an important clue for understanding which market barriers are the key in hampering market transformation, and which factors contributed to the overcoming of these barriers. Based on the findings on the drivers of the market success the authors draw lessons for the design of effective market transformation programs.
Lessons From The Restructuring Of The Hungarian Electricity Industry
Restructuring the monopolistic, state-owned, obsolete, and polluting utility industries of post-socialist economies poses a challenging ground for the utility deregulation wave travelling around the world. Utility restructuring in the region of Central and Eastern Europe (CEE) is unique from several perspectives, including the domination of foreign capital vs. national resources as the only feasible vehicle towards a drastic change in the industry; and the ambitious goals of harmonization with EU liberalization schedule to accelerate accession. It is also widely expected that deregulation will help bringing down world-record high energy intensities in these economies.Hungary has been the pioneer among economies in transition to unbundle, deregulate and privatize the utility industries and to make the first steps towards EU conform market liberalization within less than half a decade. The first stages of privatization and restructuring have been declared a success story in Western media. However, what is a success story from the perspective of foreign may be viewed differently from other viewpoints. The paper describes the process of the utility restructuring in Hungary, and examines its impacts from the economic, environmental and policy perspectives. The paper also gives an outlook to the CEE region, comparing the pathway of the pioneer Hungarian deregulation to that of the following countries in the region to restructure their energy sectors. However, the lessons to be learned from the Hungarian electricity industry restructuring are not only vital for other economies in transition in the line for utility deregulation, but are often universally applicable.
Globalnaia ekologicheskaia perspektiva, 2000
Globalnaia ekologicheskaia perspektiva, 2000 : doklad IUNEP o sostoianii okruzhaiushchei sredy v kontse tysiacheletiia
Residential Lighting in Lithuania
A wider use of compact fluorescent lamps (CFLs) offers a significant opportunity for Lithuania in reducing wasteful electricity consumption, and making progress towards retiring the Chernobyl-type Ignalina nuclear power reactors. We evaluate the conservation potential of compact fluorescent lamps for managing the residential electrical energy demand in Lithuania. The analysis is undertaken from the three separate perspectives of (1) the national economy, (2) the consumers and (3) the utilities. In our analysis we use the most recent available data on Lithuanian residential lighting. The costs of conserved energy of 15 and 23 W CFLs range from $0.007 to 0.031 per kW h depending on CFL price and assuming 4-hour daily lamp use. Replacing only the two most used 60 W incandescent lamps per household with CFLs would save 190 GW h of electrical energy for Lithuania annually worth 12 million US dollars at the long run marginal cost. We compare the current residential lighting situation in Lithuania with that in Hungary and Poland, where introduction of CFLs has been much more successful. We then discuss factors that could explain the much higher CFL penetration in Hungary and Poland, barriers to immediate large-scale introduction of CFLs in Lithuania, and policy instruments that could be used for promoting the diffusion of CFLs in the residential sector of Lithuania. We conclude that future success of CFL penetration in Lithuania will depend on aggressive information and promotion efforts by at least the CFL manufacturers, and/or by any of the stakeholder institutions (e.g. the state agencies responsible for energy and environment, electric utilities, international agencies, etc.). Given the small size of the Lithuanian market, it would make sense to “team up” with one or more neighboring countries to address the CFL issues.
A spatially and temporally resolved biogenic hydrocarbon emissions inventory for the California South Coast Air Basin
Spatially and temporally resolved inventories for green leaf biomass and biogenic hydrocarbon emissions were developed for the California South Coast Air Basin (SoCAB) using a geographic information system (GIS) and digitized land-use data based on low altitude aerial imagery. Urban, agricultural, and natural land-use distributions in the SoCAB were combined with biomass factors for each land-use category to produce a spatially resolved biomass inventory. As of 1990, about 80% of the approximately 6 × 106 metric tons of green leaf biomass was concentrated primarily in the forested mountains on the northern and eastern boundaries of the SoCAB. A biogenic hydrocarbon emissions inventory was developed by combining the biomass inventory with hourly emission rates for 278 tree, shrub, and ground cover species identified in the study area. Correcting for environmental factors, including light intensity, canopy shading, and temperature (from data for the period 9/87-6/92), combined isoprene and monoterpene emissions were estimated to be approximately 125–140 tons d−1 (td−1) for an average summer day, 180–200 td−1 for an average high ozone-episode day, and approximately 40 td−1 for an average winter day. The ratio of monoterpene to isoprene emission inventories ranged between approximately 1 and 2 for the summer and winter, respectively. Isoprene emissions were highest in the mountains and certain urbanized portions of the SoCAB whereas monoterpene emissions were highest in the mountains and the sagebrush/chaparral-dominated portions of the study area. On a mass basis, the biogenic hydrocarbon emissions inventory for the SoCAB obtained in this study represents approximately 10% of the anthropogenic VOC emissions in the Basin on a summer day.
Assessing the residential lighting efficiency opportunities in Lithuania
We evaluate the conservation potential of compact fluorescent lamps (CFLs) for managing the residential electrical energy demand in Lithuania. The analysis is undertaken from the three separate perspectives of (1) the national economy, (2) the consumers and (3) the utilities. The costs of conserved energy of 15 and 23 watt CFLs vary from $0.009 to 0.036 per kWh depending on CFL price and daily lamp use. Replacing only the two most used 60 watt incandescent lamps per household with CFLs would save 190 GWh of electrical energy for Lithuania annually worth 12 million US dollars at long run marginal costs.We compare the existing residential lighting situation and energy efficiency opportunities in Lithuania with the situation in Hungary, where introduction of CFLs has been much more successful. We then discuss the barriers to immediate large-scale introduction of CFLs in Lithuania, and policy instruments that could be used for promoting the diffusion of CFLs in the residential sector of Lithuania.We conclude that future success of CFL penetration in Lithuania will depend on an aggressive information and promotion effort by at least the CFL manufacturers, or by any of the stakeholder institutions (e.g. the state agencies responsible for energy and environment, electric utilities, etc.).
Proceedings of a workshop on Harmonisation of East-West radioactive pollutant measurement, standardisation of techniques considerations of socio-economic factors
Department of Physics Eötvös University, Budapest from 28th August to 2nd September 1994