1. Energy Revolution Policies for a Sustainable Future
Chapter 2: Barriers
by Howard Geller
Summary - Travis Lantz
Critique - Nick Gasnier

2. Discussion of Barriers
1.) Barriers to greater energy-efficiency
2.) Barriers to renewable energy use

3. Table 2-1 Barriers to the Adoption of Energy Efficiency and Renewable Energy Technologies
* Limited supply infrastructure
* Quality Problems
* Insufficient information and training
* Misplaced incentives
* Lack of money or financing
* Purchasing Procedures
* Pricing and tax barriers
* Regulatory and utility barriers
* Political obstacles

4. Barriers to Greater Energy Efficiency Limited Supply Infrastructure
In some countries, especially developing and former communist nations, energy efficient technologies are:
- not produced
- not readily available
When higher energy efficiency is not an option:
- consumers ignore energy performance
- manufacturers have little incentive for improving efficiency

5. Barriers to Greater Energy Efficiency Quality Problems
Hurts the reputation of energy efficient products
this leads to low consumer acceptance

6. Barriers to Greater Energy Efficiency Insufficient Information and Training
Consumers and Businesses may not:
- be aware of energy efficient options
- have information on how much energy is saved
- know how much money would be saved
In addition, consumers may have doubts about energy saving claims, and the ability for these products to work in their homes.

7. Barriers to Greater Energy Efficiency Misplaced Incentives
Financial interests may not be aligned
- those responsible for installing energy efficient measures
- those who purchase energy and would benefit from such measures
Use of specifically required efficiency measures are not specified by the designer.

8. Barriers to Greater Energy Efficiency Purchasing Procedures
Lowest-cost product with the desired features = the ‘best buy’
lack of incentive for energy efficient measures
consumers pay attention to:
- price
- product features and performance
- capacity
- reliability
- brand name
- NOT energy-efficiency

9. Barriers to Greater Energy Efficiency Lack of Money or Financing
Consumers/businesses may lack money needed for energy-efficient projects
Long-term lending to businesses is almost nonexistent in developing and former communist nations

10. Barriers to Greater Energy Efficiency Pricing and Tax Barriers
Many nations (rich and poor) subsidize conventional energy sources = reduced incentive for efficient energy use by consumers
energy prices rarely reflect full costs to society:
- production and use
- social and environment = pollution from air, water, and land, or global climate change caused by power generation and supply

11. Barriers to Greater Energy Efficiency Regulatory and Utility Barriers
Utilities:
- do not have financial incentive to promote the use of energy efficient sources
- may refuse to buy energy from consumers at reasonable rates

12. Barriers to Greater Energy Efficiency Political Obstacles
Powerful industries can oppose or block action aimed at increasing energy efficiency:
- fossil fuel or carbon dioxide taxes
- vehicle efficiency standards
- minimum efficiency standards for appliances

13. Barriers to Renewable Energy Use Limited Supply Infrastructure
Energy-efficient systems are not readily available -- rural areas especially, where they could be most economically viable
Private firms will not bring product into new regions --> a market for energy-efficient products is never established
Products are much more costly in countries where they are not manufactured, relative to local sources of energy

14. Barriers to Renewable Energy Use Quality Problems
Solar and bioenergy systems lack standardization and quality control
Systems can be improperly assembled or installed
Service and repair may not be readily available in some areas

15. Barriers to Renewable Energy Use Insufficient Information and Training
Consumers may lack credible information on these aspects of renewable energy options:
- performance
- reliability
- economic merit
Businesses may lack information on potential customers for renewable energy products

16. Barriers to Renewable Energy Use Lack of Money or Financing
Renewable energy technologies have:
- a long pay back period
- lack of long-term financing at low interest rates

17. Barriers to Renewable Energy Use Pricing and Tax Barriers
Renewable energy measures are not affordable when traditional energy sources are subsidized
Electricity prices in rural areas are not reflective of the cost for the electricity grid extension

18. Barriers to Renewable Energy Use Regulatory and Utility Barriers
Utilities impede renewable energy development by:
- adopting ridiculous interconnection requirements
- refusing to pay reasonable rates
- establishing burdensome application procedures

19. Barriers to Renewable Energy Use Political Obstacles
Many governments favor conventional fossil fuel sources
Banks have traditionally not lended to renewable energy projects
Electric Utilities oppose market reserves for renewable electricity

20. In Summary
Many barriers limit energy efficiency improvements and renewable energy adoptions worldwide for many reasons:
- technical in nature (limited availability of products or quality problems)
- human behavior (purchase products based on least initial cost)
- flaws in the ways markets operate (energy price sunsidies, energy prices do not include full cost, or poorly informed consumers)
- public policies and institutions (lack of financing, poor regulations, or disadvantageous tax policies)

21. Critique of Barriers Chapter
Nick Gasnier

22. Questioning of Barriers
Examination of assumptions made concerning the circumstances which exist prior to the introduction of the barrier to energy efficient measures
Assumptions made about the effect of certain actions would have

23. Limited Supply Why do limited infrastructures exist ?
Assumes such an infrastructure would be used if it did exist .
Most consumers use what is most familiar to them

24. Lack of Money
Says renewable energy technologies must be offered longer-term financing at low interest rates .
Assumes renewable energy technologies would be used if the producers/consumers of them received such loans .

25. Quality problems
Why do “energy efficient” products not live up to performance claims ?
Improper use
Manufacturing flaws
Installation problems
Dangerous to assume that quality problems result only from producer or consumer actions .

26. Misplaced Incentives
Producers and consumers frequently have conflicting monetary interests .
Assumes that they would take more energy efficient measures if they were both to receive financial benefit .
Good to explain barrier with a concrete example :

27. Common example of Misplaced Incentives
rental buildings (office or residential ) usually have separate payments for monthly rent and utility bills
Owner resp for “up front” equipment purchasing costs
Tenant resp for monthly bills
Include monthly energy costs with monthly rent ?
Need for consolidation of energy monitoring .

28. Pricing and Tax Barriers
Should gov’t continue to subsidize conventional energy production ?
Assumes that subsidizing energy production makes it more available to consumers .

29. Insufficient Info and/or Training
Says many consumers are unaware of renewable energy options
Assumes that consumers would use these renewable energy options if they were aware of them

30. Regulatory and Utility Barriers
Assumes utility companies would promote more efficient energy use if they had financial incentive for doing so .

31. Political Barriers
Assumes that powerful industries are able to control political policies .
Example : Auto producers oppose vehicle emissions standards or taxes on “gas guzzlers” .