The main climate change mitigation tools can be grouped into the following categories: command and control methods, economic instruments, and voluntary instruments. Command and control instruments include technology-or performance-based standards. Economic instruments include tradable emission permits, feed-in tariffs for electricity purchase from renewables and CHP, competitive biding processes, green tradable certificates, and subsidies to consumers who purchase renewable energy equipment or renewable energy. Voluntary instruments include voluntary agreements of energy suppliers and generation disclosure rules. In the following text, we will provide some considerations of the performance of the described instruments with respect to a series of criteria that should be considered in choosing the instruments. These criteria should be based on sustainable development targets and can be expressed by specific indicators of sustainable development. The most important criteria for the selection of climate change mitigation measures are the following: efficiency, impact on energy prices, administrative costs, equity, flexibility, impact on the labour market, impact on technological innovations, security of supply, and emission reduction. Therefore, all these criteria should be taken into account during the selection of climate change mitigation tools. However, it is very difficult to select a single instrument that gives the best outcomes in terms of all these criteria. The choice of the instrument will require some trade-offs among these criteria. The conjoint choice analysis can help investigating how policy makers trade off the criteria when designing a climate change mitigation policy. In conjoint choice analysis techniques, respondents are shown various alternative representations which are described by a set of attributes, and are asked to choose those most preferred. These alternatives differ in the levels taken by two or more attributes. The application of the conjoint choice technique may shed light on the relative importance of criteria in order to suggest the choice of the optimal policy instrument. Some criteria or attributes can be expressed in monetary units, while some cannot be measured and are qualitative, therefore conjoint choice analysis helps to evaluate the marginal costs of some criteria based on a conjoint choice experiment. A simple application of the conjoint choice methodology can be an example of car selection on the market. When we buy a car, we compare the levels taken by the attributes that describe them. A car can be described by several attributes - quantitative and qualitative (price, make, number of doors, engine, the use of fuel, comfort, etc.). During the process of selection we compare these criteria and thus evaluate the qualitative criteria by making a choice. The aim of the article is to present the methodological framework for the application of conjoint choice analysis while selecting climate change mitigation instruments for Lithuania.
|Number of pages||8|
|Publication status||Published - 2008|
ASJC Scopus subject areas
- Geotechnical Engineering and Engineering Geology
- Energy (miscellaneous)
- Energy Engineering and Power Technology