A review of industrial energy and climate policies in Japan and Sweden with emphasis towards SMEs.

The threat of increased global warming resulting from the use of fossil fuels stresses decision-makers to formulate and adopt policies towards different sectors of the economy. In light of the great earthquake in Japan 2011, energy efficiency also plays an important role in meeting the challenge of power supply shortage. Energy policies towards industry are of particular importance as a major part of the energy in the economy is used in industrial production. The number of papers investigating and presenting experience from energy end-use policies are scarce. Furthermore, for those present, they often only include a very brief analysis. From a public point of view, evaluations of energy programs are of major importance to measure the performance of the programs. From an energy policy designer point of view, it is of major importance to not only see the cost-effectiveness of the policy but also to understand the fundamental mechanisms for the success or failure of an industrial energy program, in order to learn how to improve future programs. The aim of this paper is to present a review of energy end-use policy instrument in Japan and Sweden towards the industrial sector from 1990 to 2014, with special emphasis on industrial SMEs. From the results presented some general conclusions can be made, (1) results show that the cost-effectiveness differs substantially between the evaluated programs, and (2) that from a governmental point of view, subsidies towards energy audit programs seem like the most cost-effective policy. In addition to this (3) the results from the review also stress the importance of a clear strategy for every energy program on how the program is going to be evaluated, ex-ante or ex-post, and how the performance of the program is to be measured. This structure should be included from the start of the program. [ABSTRACT FROM AUTHOR]