Compressed air challenge: Market change from the inside out

Abstract

Governmental energy efficiency policy strategies generally focus on directed actions (e.g., regulations) or persuasive actions (e.g., tax incentives) and often promote the adoption of a particular efficient technology or product (e.g., compact fluorescent lamps; refrigerators; windows). Effective strategies are needed to capture the substantial efficiency opportunities that involve application of existing energy-efficient technologies, particularly within an entire system. The first author has coordinated an effort to develop one such strategy- a model of collaborative intervention based upon a successful project for industrial compressed air systems. This model seeks to effect institutional and behavioral change, rather than technological change, and involves government and public-interest facilitators bringing key market stakeholders together to develop a common vision for change. Project costs are shared among all stakeholders, as are the project benefits. Stakeholders share decision-making control, thus motivating them to participate actively and contribute beyond their financial support. This approach contrasts with conventional energy efficiency models in which the government or utilities wholly fund and control a project. It is highly cost-effective and engages market forces from the beginning to promote lasting change.