Evaluation methodology selection wizard

Methodology finder – Fiscal and tariffs – All sectors

Available policy / sector / method combinations described in specific evaluation guides

• Econometric modelling [GUIDE 21]
  The econometric method is a top-down simulation using econometric models. An econometric model specifies the relationship that is believed to hold between the various economic quantities related to a particular economic phenomenon, in this particular case energy savings. To apply the econometric method, a detailed econometric model with access to a regularly updated database is required and is also a prerequisite for the use of this method, as setting up such a detailed economic model is a significant effort. The model provides a regression analysis of energy use over time that explains the energy consumption as a result of different drivers: GDP change, activity level, energy savings etc.
• Econometric / price elasticity [GUIDE 22]
  The amount of energy consumed will depend, among other things, on the price of energy. A higher price will make it more attractive to invest into more efficient energy-using systems or stimulate more conscious behaviour related to energy use. The introduction of a tax on energy will lead to a higher price and thus to a lower consumption level, i.e. savings on energy consumption. The ratio between the relative increase in the price and the relative decrease in energy demand is called the price-elasticity. Given the tax level and the elasticity value the method provides the total saving due to the tax.

Evaluation methodology comparison table