Professional Documents
Culture Documents
Barriers To Energy Conservation - The Case of The Netherlands Social Housing Sector (Energy Policy, Vol. 11, Issue 4) (1983)
Barriers To Energy Conservation - The Case of The Netherlands Social Housing Sector (Energy Policy, Vol. 11, Issue 4) (1983)
unduly pessimistic in their assessment =C. Banister and D. Banister, 'Transport, SBritish Standards Institution, Br/~sh
of the prospect for energy conservation travel and energy in the UK', Energy Policy, Standard 2869, ~ for Petrofeum
by transfer to rail from car; and in error Vol 1 t, No 1, 1983, pp 39-51. Fuels for Oil Engines and Burners, 1970,
27%-9% is stated in Figure 11 of The Watt with amendments No 3, 1977, and No 6,
in their calculation of the values of road Committee on Energy, Towards an Energy 1980.
transport efficiency through failure to Policy for Transport, Report No 7, London, 9p. Rice, op cit, Ref 3.
consider a full treatment of energy 1980; also P. Rice, Energy Costs Ass/gned 1°CONCAWE, The Rational Utilization of
inputs in the petroleum refinery system. to Refinery Products, Working Paper, Fuels in Private Transport, (RUFIT Study),
Transport Section, Impedal College, CONCAWE, Report No 8/80, The Hague,
Otherwise, Banister and Banister have London, 1983, gives a review of British and 1980, extrapolation to unleaded gasoline
opened up an extremely profitable dis- some US refinery data; P.F. Chapman, case.
cussion of UK energy policy. Fuel's Paradise, Penguin Books, London, HBanister, opcit, Ref 1, Table 4, foothoteto
1975, gives an efficiency of 88% for UK table - efficiency losses allowed for in the
refineries in 1968. increase of consumption of 2.5%. As this
Phillip Rice 30p cit, Ref 1, Table 4. includes public lighting in the road transport
Department of Civil Engineering 4UK Department of Energy, Digest of UK sector the actual oil products conversion
Imperial College Energy Statistics, 1981, HMSO, London, factor is effectively even less than 1.025.
1981, Tables 6, 9 and 42 show refinery 120p cit, Ref 1, Table 5..
London products at the secondary level in both heat ~aUK Department of Energy, Energy
units and end use (tonnes). Paper 10, HMSO, London, 1976.
SGB Department of Transport, Transport 14UK Department of Transport, Transport
An anonymous referee is thanked for Statistics GB 1969-79, HMSO, London, Statistics GB 1971-81, HMSO, London,
pointing out the importance of recent 1980, Tables 1.30 and 1.31. 1982, Table 1.1.
increased refinery losses from cracking 6E.M. Goodger, Alternative Fuel Tech- ~sCentral Electrio'ty Generating Board,
crude oil rather than distilling; such losses nology Series, Comparative Properties of 'Summary of results: thermal efficiency of
ought to be further considered. The author Conventional and ARemative Fuels, Vol 2, generation (coal, gas and oil)' - SSEB not
is an SERC supported Research Fellow at Cranfield Press, Cranfield, Bedford, UK, included and nuclear power stations
Imperial College, working on transport 1982, Chapter 7. excluded, in CEGB Annual Report and
energy issues. 70p cit, Ref 1, Table 4, 1979. Accounts 1979-80, CEGB, London, 1980.
Energy conservation policy, more than energy supply policy, poses severe
problems to both policy instruments and administrative organization. Baniers to Policy c o m p l e x i t y
effective policy derive from inadequate control structures and rationality types, A comparison can be made between
as well as from social psychok)gical factors. This case study on the Dutch energy supply policy and energy
housing sector considers policy organization, regulation and finance. Main conservation policy. On the supply side
barriers to effective conservation policy were found in three areas: the centraliz- most inertia has been caused by goal
ation and prevailing decomposition of control tasks, acting as a source of conflicts. The policy itself is relatively
ineffectivity; the predominantly substantial rationality underlying regulation; and simple because it deals with a con-
finally, the way people involved in the building industry make their interpretations strained number of well defined
of regulations and regulatory organizations. decisions to be made (building nuclear
plants, importing LNG, building gasifi-
Keywords: Energy conservation; Housing; Netherlands cation plants etc). But there is a lack of
As in most industrialized countries, knowledge or a lack of economic unanimity on the acceptability of these
prevailing institutional conditions in attractivity. Huge amounts of energy technologies. On the other hand, con-
the Netherlands are more in favour of can be conserved by application of servation policy has almost unanimous
supply side energy policies than current know-how. 1From an economi- political support, although the policy
demand side policies (energy conser- cal point of view large-scale energy itself is far more complicated. This
vation). Effective energy conservation conservation operations do not necess- complexity arises primarily from the
policies seem to develop slowly- more arily encounter difficulties. In many fact that energy demand is the aggre-
slowly than is desired. cases the discounted costs of energy gate result of large numbers of invest-
conservation are far below those of ment and consumption decisions made
Conservation policy energy use. From this we might con- everyday by a great variety of economic
clude that energy conservation need subjects. What makes the situation yet
The difficulty of energy conservation not be problematic. The market pro- more complex is that most decisions on
policy is by no means a lack of technical cess itself often leads to the desired energy are subordinate to other kinds
The same holds for expectations actors down. At the same time housing for Table 2. The rent calculation table (edition 1/1/
have on the behaviour of other parties. these low income groups was heavily 1981).
subsidized. Today the houses in this
Total l~lldlng Number of living units
Classification of barriers sector are still assigned to people with co=ms(on) 2 3 4
From the conceptual framework which low and moderate incomes. These 95000 4.7% 4.5% -
has been indicated briefly above a people have been seriously affected by 100000 5.1% 4.8% -
classification of barriers to effective the rapid energy price increases and 105000 5.2% 5.0% -
110000 5.5% 5.3% 5.1%
control can be made. Such a classifi- thus the incorporation of energy 115000 - - 5.3%
cation is given below.9 conservation measures into the design
of new houses is of vital importance to
• The controller does not have an their household budgets. Source: Data from P.H.C. Voorter, 'Energie-arme
adequate evaluation procedure. woningen op traditionele wijze te bouwen',
• The controller has no adequate Conservation investments Energiebesparing, 82-1, 1982, pp 14-17.
model of the controlled system or
From an economical point of view,
has no information on the environ-
current insulation standards in the by low interest state loans. In addition
ment and the state of the controlled
Netherlands are far below the optimal to these subsidies to the lessor (so-
system.
value. At present gas prices, an called object subsidies), there are
• The controller does not have a suf-
additional investment of Df13000--6(0)0 subsidies to the tenant (so-called sub-
ficiently broad range of control
in insulation and efficiency improve- ject subsidies). As already indicated
measures at his disposal.
ments can be justified. Table 1 gives a above, the tenant does not usually pay
• Control problems have been solved
number of calculations for a standard the full amount required for economi-
too much by extrinsic control where
dwelling with different insulation and cal exploitation of the dwelling. This
intrinsic control would be more
heating options. It can be argued that rent is calculated from a table
effective.
there need not be any problem in (Vraaghuurtabel) published every six
• Decomposition of the system has
adapting insulation standards, express- months by government. In this table,
not been made along lines of relative
ing additional investments in a rent the yearly rent is expressed as a per-
autonomy, or new goals have been
increase. After all, the tenant will be centage of total building costs, and is
added to the control task, without
better off than without this investment, dependent on the size of the home,
adapting existing decomposition to
for his energy bill will be reduced more expressed in "living units' (see
added interdependencies.
than his rent increase. 11 However, the Table 2).
• Control is too much on the basis of
actual situation is far less simple due to The objective of the rent calculation
substantial rationality where pro-
the complicated system of finance, sub- table may be obvious in that the higher
cedural or structural rationality
sidy and regulations in the social the building costs for the same size
would be more effective.
housing sector. building, the higher the rent percent-
• Effective control may be blocked by
distorted reality definitions of age, and, as government subsidizes the
actors, eg images of rules or other
Rent calculation difference between economical rent
parties. Government is subsidizing the social and the rent calculated by this table,
housing sector in two ways: directly, by the lower the government subsidy. The
subsidizing the difference between application of this table may thus
economically required rent (so-called prevent unnecessary expensive houses,
Conservation investments in the dynamic cost rent) and the rent paid by although it may also have a drawback
Dutch social housing sector the tenant, and indirectly by financing concerning quality, acting as a barrier
Social housing
We now turn to the main findings of a
study of barriers to energy conservation Table 1. The c o l t s i x l Ilflilctl of Inlulatlon and Intprovld heiWng Imlllllllion I f f l d l n c y .
investment in the Dutch housing
sector. More detailed results have been High Enmgy Adclitlo~i
Insulation Heat efflcimtcy ¢onlm'vation invlltmlmt per Invllll¢l DII
published elsewhere. 1° The study is class recovery installation (m 3 per annum) (Dfl) (m 3 per Dfl)
confined to investments in the building 1 No No 0 0 0
of new rented houses in the 'social 2 No No 500 1900 0.26
housing' sector. This sector is financed 3 No No 800 2840 0.26
2 Yes No 1100 3390 0.32
and subsidized by central government 3 Yes No 1350 4300 0.31
and subject to an impressive number of 1 No Yes 560 760 0.74
regulations. It is a product of the low 2 No Yes 950 2660 0.36
wages policies directly after the war 3 No Yes 1180 3600 0.33
2 Yes Yes 1230 3800 0.32
when, in order to faciliate economic 3 Yes Yes 1460 4710 0.31
growth and the industrial build-up of
the Netherlands, wages were kept Note: 'Insulation class' is a standardized measure. Here insulation class I is the reference case.
present gas bills contribute to govern- gain (energy conservation)by quality interview findings that many actors
ment finance, it is not so easy to get this losses in other aspects of the dwelling have definite, but mainly untested,
money back for energy conservation (ugly houses with windows which are images of the regulation system. The
purposes, not even when it can be too small to conform with prescribed barriers these actors encounter partly
repaid in a short period of time. insulation values at minimum cost), or derive, not from the objective system,
they could negatively affect the annual but from the images they construct.
quantity of houses built. The last case
Administrative structure as a barrier will no doubt result in interdepart-
The inertia of present Dutch energy mental conflicts. Main barriers for energy
conservation policy, its low capability conservation
to adapt itself to changing circum- Our short and rather incomplete
Regulation as a barrier?
stances, is inherent to the task division excursion into the 'building regulation
between the different government Dutch social housing is regulated by jungle' may illustrate how the histori-
departments and the resulting conflict both central and local administration cally evolved system of finance and
is dynamic. 14 Energy policy is primarily by means of a large number of regu- regulation in the Dutch subsidized
the responsibility of the Department of lations. Certainly, there are elements housing sector is limited in its capacity
Economic Affairs although most policy in these regulations which are barriers to adapt properly to changing energy
instruments are in the hands of the to energy conservation, such as ceiling costs. There are severe barriers to
Department of Housing and Town height prescriptions which do not energy conservation investments in this
Planning. This latter department does account for present ventilation sector. One of the problems is that
have the legal and regulatory instru- technology. An interesting fact which there are still many regulations which
ments, but does not dispose of the this field study has revealed, however, were designed at a time when energy
necessary financial resources. As a is the complete lack of consensus on the conservation was no urgent issue, and
result, energy conservation policy in topic of energy conservation. The when technological possibilities to
this field implies complicated bargain- barriers which were indicated by one solve certain problems had yet to be
ing processes between at least three interviewee were said to be unimport- invented. One could argue that the best
departments (Housing and Town ant by another, although these way to remove these barriers is to
Planning, Economic Affairs and differences were partly due to differing update the rules so that they are suited
Finance). In addition, central govern- definitions of 'barriers'. Those people to the current situation. Although con-
ment tries to effectuate conservation who see the greatest number of barriers clusions of many technical reports and
policy by means of its direct and define any situation in which energy government papers point in this direc-
indirect influence on municipalities. conservation has not explicitly been tion, it is certainly not the most
These municipalities have their own prescribed as a barrier. Other people effective policy. Here a policy is pro-
building regulations, which are a define barriers only for those situations posed on a more thorough analysis of
condition for getting building permits. where energy conservation is strictly the problems based on field study work
Most municipalities take over the regu- excluded by a regulation. A third group and the conceptual framework given in
lations designed by their central only sees barriers where rules cannot the second section of this article.
organization (Vereniging van be changed or where there is no room Distinctions are made between three
Nederlandse gemeenten, VNG) and for negotiation in their application. main classes of barriers.
the organization often acts as a rep- Differences in consensus also derive
resentative of municipality interests from differences in the way people
in dealings with central government. think regulatory bodies act. Some Structural barriers
Conversely, central government tries people have machine-like images of The first class contains barriers which
to influence municipalities through the government agencies which carry out are the result of the structure of the
central organization and the Depart- exactly the prescriptions of central control system. An important barrier is
ment of Economic Affairs tries to government policy, whilst others see the high degree of centralization in the
persuade the VNG to incorporate much more room for negotiation with decision structure, the effect of this
higher conservation standards in its these agencies on interpretation of being that many problems which could
(concept) building regulations. building regulations. These two visions be treated far better and more
The Department of Economic lead to different strategies for removing efficiently at community level, or even
Affairs may succeed in adapting con- barriers: the first vision implies a at the level of one building project, are
servation standards to current energy strategy through central government treated by central government.
prices, either by influencing policy aided by parliamentary action, Centralized decisionmaking makes it
municipality regulations, or by the second vision implies much more a impossible to weigh the importance of
incorporating these standards in strategy of negotiation at the local different goals (size of the home,
subsidy conditions, but the financial level. We will not discuss here what energy conservation, etc) against each
problem remains unsolved. Such type of strategy is most adequate - other at the level where they are best
policies might have negative side probably a combination of some sort - known - the local level. Other barriers
effects: they could offset the quality as we only want to illustrate by these are the result of inadequate decompo-
368 E N E R G Y P O L I C Y D e c e m b e r 1983