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Why has energy efficiency not scaled-up in the industrial and commercial sectors in Ukraine ? an empirical analysis, Volume 1
 
Author:Hochman, Gal; Timilsina, Govinda R.; Country:Ukraine;
Date Stored:2014/06/12Document Date:2014/06/01
Document Type:Policy Research Working PaperSubTopics:Energy Production and Transportation; Environment and Energy Efficiency; Climate Change Economics; Energy and Environment; Climate Change Mitigation and Green House Gases
Language:EnglishMajor Sector:Energy and mining
Rel. Proj ID:1W-Quantifying The Transaction Costs Of Selected Energy Efficiency -- -- P121847;Region:Europe and Central Asia
Report Number:WPS6920Sub Sectors:Energy efficiency in Heat and Power
Collection Title:Policy Research working paper ; no. WPS 6920TF No/Name:TF098661-KCP II - QUANTIFYING THE TRANSACTION COSTS OF SELECTED ENERGY EFFICIENC
Volume No:1  

Summary: Improvement of energy efficiency is one of the main options to reduce energy demand and to reduce greenhouse gas emissions in Ukraine. However, large-scale deployment of energy efficient technologies has been constrained by several financial, technical, information, behavioral, and institutional barriers. This study assesses these barriers through a survey of 500 industrial and commercial firms throughout Ukraine. The results from the survey were used in a cumulative multi-logit model to understand the importance of the barriers. The analysis shows that financial barriers caused by high upfront costs of energy efficient technologies, higher costs of finance, and higher opportunity costs of energy efficiency investment are key barriers to the adoption of energy efficiency measures in Ukraine. Institutional barriers particularly lack government policies, which also contributes to the slow adoption of energy efficient technologies in the country. The results suggest targeted policy and credit enhancements could help trigger adoption of energy efficient measures. The empirical analysis shows strong inter-linkages among the barriers and finds heterogeneity between industrial and commercial sectors on the realization of the barriers.

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