Energy Policy The European Dimension ESRC Energy Research Conference Policy Studies Institute. London, March 31, Prof. Aviel Verbruggen University of Antwerp (UA-STEM)

Contents 1. The ‘European Dimension’ 2. Sustainable Development & Markets 3. Energy Security and Policy Focus 4. Changing Research Agenda 5. Policy Making Capabilities

EU Policy Making Council of Ministers EU Parliament EU Commission Market Credo Ind. lobbyists Societal lobbyism National interests Directives: implementation by Member States

EU Energy Policy Making Internal Market & Competition EU Energy Policy Sustainable Development Accomodate different (opposite) interests

Definition of Sustainable Development Meet the needs of the present + allow future generations to meet own needs Welfare growth for the poor Redistribution of natural resources in a fair way Populations Accumulation of wealth Use of natural resources Destination of investments Technological development Institutions Goal Change Growth Control Redistribution

Sust.Dev. : 4 Dimensions Environ- ment Social (Democracy) Economics

Sustainable Development Challenges answered by Energy Policy Sustainable Devel. Redistribution  Resource use  Investments  Technology  Institutions Energy Policy Answers Wealth growth first + aid programmes Promote Energy Efficiency Energy Taxes (?) Subsidies for Renewables, CHP, etc. R&D Renewables, Efficient techniques Markets bring salvation

Competition and regulation Unbundle Functions Trans- parancy Regulation by Function Harmon- ising Competition

Energy Security = Energy SUPPLY security Shift from Central fossil-nuclear Supply to renewable solutions distributed resources energy demand reduction is taking off slowly “Energy Security = Guaranteed Services” When?

Fossil-nuclear Demand Reduction Energy use = {number of people}. {GDP/capita}.{energy/GDP} Demand Reduction = [growth control]. [conservation].[energy efficiency] Conservation is positive (less traffic jams, stress, obesity,...) or negative (curtailed aspirations, redistribution discussions,...) Efficiency is always positive!

OECD (1998) Demand Curve for Electricity Efficiency

Conclusions for Energy Policy Energy Efficiency requires Long- term TAX POLICY Energy BILLS remain about constant in any tax regime Conservation must take over when Efficiency hits the ceiling Growth control must follow

Technology & Politics Technical Fixes Human Dimension Politics  Efficiency  Conservation  Growth control

Conclusions Energy Research Energy too much the business of engineers and business economists The ‘human and social’ dimensions are more and more important, e.g.: *social and democratic sustainability *blueprints and back-casting *limits on wealth hoarding *preserving cultural diversity, etc…

Energy Public Policy Capabilities Regulatory Capabilities Public Energy Agencies Independent Expertise Public Dialogue … uneven and … far too weak in most EU nations