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Faculty of Economics

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Kelly, S. and Pollitt, M.

The Local Dimension of Energy

CWPE1114

Abstract: In this paper, we postulate that some of the best opportunities for reducing energy demand and carbon emissions are through stronger involvement and leadership from local government. We show that local government can and do have a significant impact on both energy production and energy consumption and are important participants for the implementation of distributed generation (DG). the progress being made by successful local governments can be narrowed to three key factors. First, they have all recognised the co-benefits of a local energy strategy: a reduction in fuel poverty, increased employment, improved quality of life and mitigation of uncertain fuel supplies and prices. Secondly, successful councils have strong political leadership and employee support to implement the structural change to bring about change. Thirdly, leading councils have gained momentum by working in partnership with utilities, private companies, NGO’s, DNO’s and government departments to raise finance and garner support. While climate change remains a global issue, some of the best strategies for mitigation are implemented at the local level.

Keywords: Local Energy, Decentralised Energy, Energy Service Company (ESCo), CHP, District Heating

Author links: Michael Pollitt  

PDF: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1114.pdf

EPRG Paper Link: 1103

Open Access Link: https://doi.org/10.17863/CAM.990