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Tabaré Capitán presents at EfD - Central America Seminar Series

Research Proposal: Improving energy efficiency in Costa Rican households: the effect of pecuniary and non-pecuniary incentives in shaping the timing of consumption

EfD researchers: Francisco Alpízar, Róger Madrigal and Tabaré Capitán.

PI: Róger Madrigal.

Collaborators: Henry Chinchilla, Director of Innovation and Energy Efficiency, Compañía Nacional de Fuerza y Luz.

Abstract: Reducing a country´s dependence on fossil fuels is central to mitigate climate change and to promote the use of cheaper energy sources. In Costa Rica most energy is generated using hydro-electrical plants, however the fact that energy consumption is lumped in peak hours forces the use of fossil fuel (mostly diesel and bunker) based electricity generation. In this scenario, at any given day there is surplus of renewable energy at off-peak hours, and a heavy reliance on fossil fuels –more expensive and polluting– to be able to meet the consumption in peak hours. The addition of new sources of renewable energy has reached a limit, and so far public policies and energy prices do not promote incentives for a better management of electricity demand.

Our objective is to analyze the role of monetary and non-monetary incentives to reduce overall electricity consumption, and specially to promote a reduction in electricity consumption in peak hours.