Joachim Schleich - Böcker

Why do organisations 'leave money on the floor' by neglecting highly cost effective measures to improve energy efficiency? This question lies at the heart of policy debates over climate change and is a focus of continuing dispute within energy economics. This book explores the nature, operation and relative importance of different barriers to energy efficiency through a comprehensive examination of energy management practices within a wide range of public and private sector organisations. The authors use concepts from new institutional economics to explain individual and organisational behaviour in relation to energy efficiency, and identify the mechanisms through which such barriers may be overcome. In doing so, they are able to shed new light on the 'barriers debate' and provide a valuable input to the future development of climate policy.Combining a critical evaluation of different theoretical perspectives with detailed case study research, this significant new book analyses how and why organisations waste energy and suggests practical policy measures to help prevent these losses. It will be required reading for professional economists, academics and students with an interest in energy use, environmental policy and organisational economics. It will also be highly relevant for policymakers and consultants working on the important policy issues surrounding energy efficiency and climate change.

In its latest Assessment Report, the Intergovernmental Panel on Climate Change (IPCC, 2007) projects that without further action the global average surface t- perature would rise by a further 1. 8–4. 0°C until the end of this century. But even if the rise in temperature could be limited to the lower end of this range, irreversible and possibly catastrophic changes are likely to occur. Consequently, the protection of the earth’s atmosphere requires substantial efforts to reduce CO and other green- 2 house gas emissions – especially in countries with very high per capita emissions. To limit the imminent rise in temperature, in the Kyoto-Protocol, the European Union has committed itself to reducing the emissions of greenhouse gases by 8% up to 2008–2012 compared to 1990 levels. Within the EU burden sharing agr- ment, some countries have to achieve even higher emissions reductions. Germany was assigned a reduction target of 21%. The entry into force of the Kyoto Protocol in February 2005 marks a first step towards meting global climate targets, but more ambitious action to reduce greenhouse gas emissions is needed after 2012, when the Kyoto targets expire. Under German presidency, the EU has committed itself to unilaterally reduce its greenhouse gas emissions until 2020 by 20%. In case a Post- Kyoto agreement can be reached, the EU reduction target would be 30% (CEU, 2007).

In its latest Assessment Report, the Intergovernmental Panel on Climate Change (IPCC, 2007) projects that without further action the global average surface t- perature would rise by a further 1. 8–4. 0°C until the end of this century. But even if the rise in temperature could be limited to the lower end of this range, irreversible and possibly catastrophic changes are likely to occur. Consequently, the protection of the earth’s atmosphere requires substantial efforts to reduce CO and other green- 2 house gas emissions – especially in countries with very high per capita emissions. To limit the imminent rise in temperature, in the Kyoto-Protocol, the European Union has committed itself to reducing the emissions of greenhouse gases by 8% up to 2008–2012 compared to 1990 levels. Within the EU burden sharing agr- ment, some countries have to achieve even higher emissions reductions. Germany was assigned a reduction target of 21%. The entry into force of the Kyoto Protocol in February 2005 marks a first step towards meting global climate targets, but more ambitious action to reduce greenhouse gas emissions is needed after 2012, when the Kyoto targets expire. Under German presidency, the EU has committed itself to unilaterally reduce its greenhouse gas emissions until 2020 by 20%. In case a Post- Kyoto agreement can be reached, the EU reduction target would be 30% (CEU, 2007).

As the residential buildings sector accounts for around 30 percent of the final energy demand in Germany, this sector is increasingly becoming the focus of public attention with regard to climate change. In this book, decisions on energy consumption by private households are examined. The analyses are based on several empirical methods. The results show that the road to more sustainable energy consumption in residential buildings is not hampered by a lack of will on behalf of the consumers. However one should be realistic that there are many instances where improving thermal institution involves additional economic costs for individual households.