Why Has Energy Efficiency Not Scaled-up in the Industrial and Commercial Sectors in Ukraine? An Empirical Analysis

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.

Bibliographic Details

Main Authors:	Hochman, Gal, Timilsina, Govinda R.
Language:	English en_US
Published:	World Bank, Washington, DC 2014-06
Subjects:	AGGREGATE LEVEL, AVAILABILITY, BARRIERS TO ADOPTION, BARRIERS TO ENERGY EFFICIENCY, BARRIERS TO ENERGY EFFICIENCY MEASURES, CAPITAL COSTS, CARBON, CARBON ECONOMY, CARBON TECHNOLOGIES, CLEAN ENERGY, CLEANER PRODUCTION, CLIMATE, CLIMATE CHANGE, CLIMATE CHANGE ECONOMICS, CLIMATE CHANGE MITIGATION, CLIMATE POLICY, DIFFUSION, DISCOUNT RATES, DOMESTIC SUPPLY, ECOLOGICAL ECONOMICS, ECONOMIC SECTORS, EFFICIENCY IMPROVEMENT, EMISSIONS, EMPLOYMENT, END-USES, ENERGY AUDITS, ENERGY BILLS, ENERGY CONSERVATION, ENERGY CONSERVATION POLICY, ENERGY CONSUMPTION, ENERGY COSTS, ENERGY DEMAND, ENERGY ECONOMICS, ENERGY EFFICIENCY, ENERGY EFFICIENCY ECONOMICS, ENERGY EFFICIENCY GAP, ENERGY EFFICIENCY IMPROVEMENTS, ENERGY EFFICIENCY INVESTMENTS, ENERGY EFFICIENCY MEASURES, ENERGY EFFICIENCY PROGRAMS, ENERGY EFFICIENT TECHNOLOGIES, ENERGY EXPENDITURES, ENERGY INTENSIVE, ENERGY INTENSIVE MANUFACTURING, ENERGY POLICY, ENERGY PRICE, ENERGY PRICES, ENERGY RESOURCES, ENERGY SAVINGS, ENERGY SERVICE, ENERGY SUBSIDIES, ENERGY SYSTEM, ENERGY TECHNOLOGIES, ENERGY TECHNOLOGY, FINANCIAL BARRIERS, FINANCIAL INCENTIVES, FINANCIAL INSTITUTIONS, FINANCIAL SUPPORT, GHG, GLOBAL GREENHOUSE, GLOBAL GREENHOUSE GAS, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS ABATEMENT, GREENHOUSE GAS ABATEMENT COST, GREENHOUSE GAS EMISSIONS, HEAT, HEAT METERING, HIGHER ENERGY PRICES, IMPERFECT INFORMATION, IMPORTS, INCOME, INTERNATIONAL ENERGY AGENCY, INVESTMENT DECISIONS, INVESTMENT IN ENERGY EFFICIENCY, INVESTMENTS IN ENERGY, INVESTMENTS IN ENERGY EFFICIENCY, LIKELIHOOD FUNCTION, LOW-CARBON, MARGINAL ABATEMENT, MARGINAL ABATEMENT COST, MONETARY VALUE, NATURAL RESOURCES, NEGATIVE IMPACT, POWER, PP, PRICE VOLATILITY, SUPPLY CURVES, TAX CREDITS, TEMPERATURE, TRANSACTION COSTS, VALUE OF ENERGY,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19662897/energy-efficiency-not-scaled-up-industrial-commercial-sectors-ukraine-empirical-analysis https://hdl.handle.net/10986/18759
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