Abstract for: Lessons from 10 Years Policy Design in the Energy Efficiency Sector

The main goal of this study is to take closer look on the behavior of the real system of energy efficiency projects in multi-family buildings and by means of the system dynamics model carry out analysis of the structure and behavior of the system to understand why energy efficiency goals set by the government were not met. It is done with the system dynamics model created in 2009 to study diffusion process of energy efficiency measures in multi-family buildings. Lessons from 10 years policy design in the residential energy efficiency sector show that today’s problems arise from yesterdays solutions – lack of long term policy planning documents has led to discontinuing financial support that has caused a chain of negative side effects, such as imbalance between supply and demand of construction services causing oscillation of price, pay-back time, net benefits, quality of construction works, addiction to financial support, word-of-mouth effect. This has led to the situation that government was not able to reach goals set by itself.