Gouldson, Andy, Kerr, Niall, Millward-Hopkins, Joel et al. (3 more authors) (2015) Innovative financing models for low carbon transitions:Exploring the case for revolving funds for domestic energy efficiency programmes. Energy policy. pp. 739-748. ISSN 0301-4215
Abstract
The IEA has estimated that over the next four decades US$31 trillion will be required to promote energy efficiency in buildings. However, the opportunities to make such investments are often constrained, particularly in contexts of austerity. We consider the potential of revolving funds as an innovative financing mechanism that could reduce investment requirements and enhance investment impacts by recovering and reinvesting some of the savings generated by early investments. Such funds have been created in various contexts, but there has never been a formal academic evaluation of their potential to contribute to low carbon transitions. To address this, we propose a generic revolving fund model and apply it using data on the costs and benefits of domestic sector retrofit in the UK. We find that a revolving fund could reduce the costs of domestic sector retrofit in the UK by 26%, or £9 billion, whilst also making such a scheme cost-neutral, albeit with significant up-front investments that would only pay for themselves over an extended period of time. We conclude that revolving funds could enable countries with limited resources to invest more heavily and more effectively in low carbon development, even in contexts of austerity.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Keywords: | Carbon, Energy, Finance, Investment, Retrofit, Revolving fund |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > The York Management School The University of York > Faculty of Sciences (York) > Stockholm Environment Institute at York (York) The University of York > Faculty of Sciences (York) > Environment and Geography (York) |
Depositing User: | Pure (York) |
Date Deposited: | 08 Feb 2017 12:40 |
Last Modified: | 23 Jan 2025 00:09 |
Published Version: | https://doi.org/10.1016/j.enpol.2015.08.012 |
Status: | Published |
Refereed: | Yes |
Identification Number: | 10.1016/j.enpol.2015.08.012 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:111963 |
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Description: Energy Policy - Revolving Funds Paper Revised Mk2