The Law of End-Use Energy Efficiency

Abstract

This thesis investigates options for reforming New Zealand’s law, regulation and policy concerning energy efficiency. The external drivers in law, regulation and policy that affect household energy use for space heating, hot water heating and household appliances will be examined. Comparative studies with Germany and California will be conducted to make a systematic appraisal of existing policy instruments with the intention of seeing which of these instruments could be applicable in a New Zealand context. The role of the state and the implementation of regulation will be addressed as well as the effectiveness of different energy efficiency measures to change consumer behaviour to adopt energy efficiency in their household. One can conveniently divide the different energy efficiency measures into conventional regulation, decentred regulation, market mechanisms and fiscal measures; unregulated market forces can also be considered. Governments do not develop market mechanisms for domestic end-use energy efficiency. The advantage of conventional regulation (such as energy performance standards) is that it is not as dependent on market and consumer behaviour as decentred regulation (such as energy information measures and voluntary agreements) or situations with no regulation (where market pressure may still be present). The advantage of decentred regulation is that it is more flexible than conventional regulation and can therefore provide a quicker response to the contemporary challenges of evolving markets. Fiscal measures such as subsidies and funding are considered a good approach as a support of conventional regulation. Forceful direction by the legislature is needed to improve the energy efficiency measures. There should be a mixture of conventional regulation, decentred regulation and fiscal measures. The aim is to make the industry manufacture and distribute energy efficient products and convince the consumer to buy these products.