The determinants of the energy efficiency potential and its exploitation

Aim of the paper is an analysis of the theoretical basis of the energy efficiency gap, and an assessment of the policies and instruments adopted in the field of energy efficiency. The approach is based on literature review, and on the analysis of: energy consumption data, efficiency policies and targets in the European Union and in Italy. The paper highlights how economic theory generally undervalues the supply-side role, and specifically the strategic decisions taken by the producers about the energy efficiency of goods. It also confirms the difficulties to assess the results of energy efficiency policies, and to choose and balance the economic instruments they adopt.