Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany

Energy efficiency retrofits are often impeded by high perceived investment risks, long payback periods and a lack of skills. At the municipal level these issues are particularly pronounced as procuring, implementing, and managing retrofits can exceed existing municipal governance capacities. The dif...

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Auteurs principaux: Polzin, F, von Flotow, P, Nolden, C
Format: Journal article
Langue:English
Publié: Elsevier 2016
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author Polzin, F
von Flotow, P
Nolden, C
author_facet Polzin, F
von Flotow, P
Nolden, C
author_sort Polzin, F
collection OXFORD
description Energy efficiency retrofits are often impeded by high perceived investment risks, long payback periods and a lack of skills. At the municipal level these issues are particularly pronounced as procuring, implementing, and managing retrofits can exceed existing municipal governance capacities. The diffusion of municipal LED street lighting as a replacement for conventional lighting serves as an example. This paper argues that technological (e.g. complexity and maturity), economic (e.g. selling services vs. products and financing costs), institutional (e.g. property situation and contracts) and competency barriers to retrofitting (e.g. lack of measurement capacity and qualified facilitators) translate into transaction costs. We develop a taxonomy of appropriate modes of municipal retrofitting governance based on transaction costs economics. The findings indicate that more market-based solutions, energy performance contracts in particular, can facilitate the procurement of innovative energy efficiency retrofitting solutions and associated investments among municipalities if neutral tenders, open-book accounting, municipal ownership and intermediary organisations allow municipalities to choose appropriate governance structures for particular technologies and retrofits.
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spelling oxford-uuid:15fa7926-84b5-47e4-95db-c0edd38dbeb22022-03-26T10:28:29ZModes of governance for municipal energy efficiency services – the case of LED street lighting in GermanyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:15fa7926-84b5-47e4-95db-c0edd38dbeb2EnglishSymplectic ElementsElsevier 2016Polzin, Fvon Flotow, PNolden, CEnergy efficiency retrofits are often impeded by high perceived investment risks, long payback periods and a lack of skills. At the municipal level these issues are particularly pronounced as procuring, implementing, and managing retrofits can exceed existing municipal governance capacities. The diffusion of municipal LED street lighting as a replacement for conventional lighting serves as an example. This paper argues that technological (e.g. complexity and maturity), economic (e.g. selling services vs. products and financing costs), institutional (e.g. property situation and contracts) and competency barriers to retrofitting (e.g. lack of measurement capacity and qualified facilitators) translate into transaction costs. We develop a taxonomy of appropriate modes of municipal retrofitting governance based on transaction costs economics. The findings indicate that more market-based solutions, energy performance contracts in particular, can facilitate the procurement of innovative energy efficiency retrofitting solutions and associated investments among municipalities if neutral tenders, open-book accounting, municipal ownership and intermediary organisations allow municipalities to choose appropriate governance structures for particular technologies and retrofits.
spellingShingle Polzin, F
von Flotow, P
Nolden, C
Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title_full Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title_fullStr Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title_full_unstemmed Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title_short Modes of governance for municipal energy efficiency services – the case of LED street lighting in Germany
title_sort modes of governance for municipal energy efficiency services the case of led street lighting in germany
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AT vonflotowp modesofgovernanceformunicipalenergyefficiencyservicesthecaseofledstreetlightingingermany
AT noldenc modesofgovernanceformunicipalenergyefficiencyservicesthecaseofledstreetlightingingermany