wizard 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

Evaluation method Pros & cons Method characteristics Required input data
  Pro Con Savings output Aggregation level Application (ex-ante/ex-post) Energy use before and after actions Number of energy saving actions Energy saved per action Normalisation factors Gross-to-net adjustments
Econometric modelling Explanation of relations Possibly missing factors Total savings Top-down Ex-post only For (sub)sector Depends on case Depends on case For behaviour, temperature, activity level No (if covered in method)
Econometric –  Price elasticity Simple (only price) Situation dependent Total savings Top-down Ex-ante and ex-post For (sub)sector No (included in total savings) No (included in total savings) No (method on normalised case) E.g. double counting