Policy - 02/July/2018

Sticks and carrots

Voluntary agreements, instead of, or in conjunction with, regulation, are becoming the norm in many parts of the world to reduce wasted energy in various consumer sectors

In most people’s minds something is either voluntary or mandatory. Indeed, lobby groups spend vast amounts of time and money trying to persuade regulatory bodies which targets should be set in stone and which should be left more to chance. There is, however, a third way, which is becoming more common in the energy efficiency sector: the voluntary agreement, touted by industry, and increasingly by regulators, as a way to accelerate energy savings and boost innovation in a timely and cost efficient way, in particular across the consumer goods sector. Not every agrees, though, that such agreements are the panacea to reducing energy use. ...

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