A newly released paper from Tony Isaacs and Alan Pears examines traditional evaluation methods for energy efficiency policy, to explain why improvements to analysis and development are necessary, and how a fresh approach could deliver more effective outcomes.

How cautious analysis could lead to ‘do nothing’ policy – A case study of the 6-star housing Regulation Impact Statement examines the 2009 RIS for 6-star houses as an example case study, in terms of up-front costs, energy prices, discount rates, additional potential costs and benefits, and other issues. The 6-star housing standard was previously found to have marginal benefits, fuelling debate about the rationale and stringency levels of regulation for residential energy efficiency.

Their new approach to analysis found significantly higher benefits and lower costs for consumers and industry. The findings highlight the need to keep up with market changes and data availability, and to establish a consistent method for accurate and comprehensive evaluations of costs and benefits. This method aims to provide decision makers with a better understanding of the full impacts of energy policies.

Download How cautious analysis could lead to ‘do nothing’ policy.