Print Email Facebook Twitter Rethinking European energy taxation to incentivise consumer demand response participation Title Rethinking European energy taxation to incentivise consumer demand response participation Author Voulis, N. (TU Delft System Engineering) van Etten, Max (Student TU Delft) Chappin, E.J.L. (TU Delft Energie and Industrie) Warnier, Martijn (TU Delft System Engineering) Brazier, F.M. (TU Delft System Engineering) Date 2019 Abstract The European Union considers demand response to be an integral part of its future energy vision, in particular as a supporting mechanism for renewable resource integration. To achieve high demand response participation, the European Union recognises the need for adequate financial incentives for all consumers, especially for residential and service sector consumers. However, the European Energy Tax Directive, which regulates energy taxation in the European Union, is currently not in alignment with this vision, as it does not provide any financial incentives for demand response participation. This paper explores the potential of energy taxes to provide such incentives. First, through an analysis of the current energy taxation and demand response literature. Second, by quantifying the difference in financial incentives between two tax designs (per-unit and ad valorem taxes) in a simulation case study of consumers heat pumps in the Netherlands. Results show that financial incentives are 3.5 times higher for the ad valorem tax than for the per-unit tax. The paper concludes with recommendations for policy makers for the design of energy taxes that provide residential and service sector consumers with adequate financial incentives for demand response participation. Subject Demand responseEU energy policyEnergy taxesFinancial incentivesResidentialService sector To reference this document use: http://resolver.tudelft.nl/uuid:036bd27a-0a8e-41df-ab02-f6bdfd7eb5fb DOI https://doi.org/10.1016/j.enpol.2018.09.018 ISSN 0301-4215 Source Energy Policy, 124, 156-168 Part of collection Institutional Repository Document type journal article Rights © 2019 N. Voulis, Max van Etten, E.J.L. Chappin, Martijn Warnier, F.M. Brazier Files PDF 1_s2.0_S0301421518306244_main.pdf 1.92 MB Close viewer /islandora/object/uuid:036bd27a-0a8e-41df-ab02-f6bdfd7eb5fb/datastream/OBJ/view