Mainstream ming Building Energyy Efficiency Codes in Developing Counttries
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The Role of Incentives Mandatory B BEECs are criticcal to compel the t supply chain to begin to develop and produce mo ore energy-effiicient building gs and to in ntegrate energ gy efficiency requirementss into standard practices. This market transforrmation processs is critical to overcoming the market ba arriers to investing in more energy-efficien nt buildings. Although nott the intention by b design, the biiggest shortcom ming of BEECs iss that they do little, if anyth hing, to shift deemand or to en ncourage the su upply chain to do d more than what is necesssary to comply with the requirrements. The peerpetual cycle of o innovations driven by maarket demand an nd the desire off suppliers to tem mpt demand sid de interests is the ultimate goal of energy efficiency marrket transformaation (see figuree 1.7). BEECs alone cannot achieve that, since s they only y establish a flo oor for the req quired energy performance of buildings. Figure 1.7. Pu ush and Pull Strrategy to Impro ove Energy Perfformance of New w Buildings
Source: Authors,, adapted from Ha arris/Mahone (19988).
Incentivees are useful in n (1) encourag ging commerciaal deployment and market recognition o of energy efficieency innovation ns that surpass the requiremen nts of BEECs; and (2) oveercoming the resistance to change in naascent markets because of unfamiliarity and lack of ex xperience with new n techniquess and different materials, as well as the fin nancial risks asssociated with higher h constructtion costs in ord der to comply with BEECs. Incentives do not n have to be monetary in naature. But they always carry outright or im mplicit financiall benefits to maarket participan nts. Some practiical examples of incentives and their direcct and indirect benefits to theiir intended ben neficiaries are summarized in table 1.1. Inccentives do not need to be applicable to the en ntire building in order to prrovide benefits. Box 1.4 providees the example o of market transformation for efficient wind dows.