44
energy saving but the intended target of 2 per annum could be achieved only if everything fell into place: high economic growth, a strict
European energy saving policy including a high price for CO
2
emission allowances and strict standards on cars and electrical appliances and the
implementation of high-intensity measures to achieve a very high proportion at least 80 of the technical saving potential would actually
be realised. If European policy were not so strict, the maximum saving per annum would be between 1.6 and 1.9.
3.4 Policy effects by sector
This section looks at the combinations of instruments that have contributed to energy saving in each sector and the known effects of the
instruments used.
3.4.1 Manufacturing
A significant proportion of the instruments used in the manufacturing sector have not had a significant policy impact. The exact impact of some
of the other instruments cannot be quantified. Emissions trading system
Although the European CO
2
emissions trading system has become the governments main policy instrument to save energy in the energy
intensive manufacturing sector, its effectiveness so far has been very limited. The systems impact relies heavily on the price of a CO
2
emission allowance and the extent to which entrepreneurs regard the system as
permanent. It did not result in substantial savings in the Netherlands between 2005 and 2007. We consider this further in section 5.5.7.
Voluntary agreements Voluntary agreements play an important role in the policy for medium -
sized and large manufacturing companies. So far, the impact of voluntary agreements in the manufacturing sector has been mixed. In the first
multiyear agreement the participants together accounted for 75 of energy consumption in the manufacturing sector and all relatively
inexpensive and simple measures could still be taken. It is therefore assumed that this agreement improved energy efficiency in the sector.
The impact of the second multiyear agreement, for the period 2000 -2008, was probably limited. Since wholesale consumers were exempt from the
multiyear agreements upon the introduction of the CO
2
emissions trading, the participants in the second agreement accounted for just 15 of
45
manufacturing energy consumption. Furthermore, most of the relatively simple measures had already been taken under the first agreement.
25
The effects of the Benchmarking Agreement, the successor to the first multiyear agreement for energy intensive industries, were virtually wiped
out on the introduction of the European CO
2
emissions trading system in 2005. Participants in the system no longer needed to prepare energy
efficiency plans and the goal of ranking among the best in the world for energy efficient process installations by 2011 was abandoned
Verificatiebureau Benchmarking, 2004; 2006. The Benchmarking Agreement has since been terminated. Its successor is the Multiyear
Energy Efficiency Agreement for ETS companies MEE Agreement,
26
which came into effect in October 2009. The effects of this agreement are not yet known.
Environmental Management Act The Environmental Management Act has had a limited influence on energy
savings. Pursuant to the Act, licensed companies have had to use energy efficient techniques since 1993 if they had the financial resources to do
so. Municipalities and provinces are responsible for implementing the Act. A study of the Acts implementation found that municipalities and
provinces did not give priority to energy savings when granting licences and, moreover, the regulations on licence issuers were difficult to
implement De Buck et al., 2007; Haskoning, 2009; Majoor De Buck, 2010.
Tax schemes and grants Tax schemes and grants have had an impact in the manufacturing sector
Davidson et al., 2011. It has been largely restrained, however, by the large number of free riders, companies that use a scheme but would have
invested in energy savings anyway.
27
We consider the impact of government policy on the manufacturing sector in more detail in chapter 5 of this part.
25
The actual effects of the second multiyear agreement cannot be quantified precisely. Owing to differences in definitions, it cannot be said whether participants were more energy efficient than
non-participants.
26
ETS: emisisons trading system.
27
There are reasons not to use the term free riders as it usually refers to those who benefit from a scheme but contribute little if anything. The term deadweight loss, the loss of economic efficiency
due to unnecessarily high prices or costs, might be more appropriate. We use the term free riders here as it is frequently used in evaluations of grants e.g. Aalbers et al., 2007; IBO, 2001.
