Ex-Ante Assessment of the Implementation of an Energy Efficiency Certificate Scheme in Chile

Abstract

Energy efficiency (EE) policies are primarily implemented in developed countries. However, the benefits of implementing them in developing countries may be quite large. In this article, the potential implementation of an EE certificates scheme in Chile is studied. In particular, the white-certificate mechanism (which is a credit-based trading mechanism) used in Italy to promote EE is studied and its implementation in Chile through an ex-ante simulation is considered. The purpose of this mechanism is for the regulation authority to set a fixed amount of energy savings (which minimizes the total cost of producing the needed energy supply) and obligate gas and electricity distribution companies to obtain enough certificates to reach that target. Several benefits of reducing energy consumption is studied using a social-economic project assessment methodology. As a result, large economic benefits of implementing a white-certificate scheme in Chile were found. DOI: 10.1061/(ASCE)EY.1943-7897.0000068. (C) 2012 American Society of Civil Engineers.