Project programme

ANNEX I. Project programme

Contract No JOS3-CT97-0021

Proposal number PL97-0152

Armines - Cerna; France
Lunds University; Sweden
Utrecht University; Holland
The Wuppertal Institute, Germany
Co-ordinated by: AKF, Institute of Local Government Studies; Copenhagen

Duration: 24 months

Abstract

1. Title: Voluntary Agreements - Implementation and Efficiency (VAIE)

2. Objectives of the project

The objective of the project is to discover under which conditions Voluntary Agreements (VA) can be expected to achieve environmental targets in an efficient way. The research questions are grouped under the following headings: a. What is VA, b. How does VA work, c. Is there a role for VA to play in energy policy in the future? on the national level and/or on the EU-level?

3.Technical approach

The project is organised in the following tasks.

We make a meta-analysis of many VA's. The meta-analysis is based on a stringent theoretic model integrating a game-theoretic and transaction cost approach.
We carry out country studies in Denmark, France, Germany, Holland and Sweden and, based on these a synthesis, addressing the research questions.
A special element in the project will focus on the roles of EU vis-à-vis the member states (the principle of subsidiarity).
As the accusation of window dressing is often used in relation to VA, a special task is addressing the problem: Actual outcome in relation to base-line.

4. Expected achievements and exploitation

The project will describe if VA's can affect the energy behaviour of firms and how VA's should be structured to reach overall targets, e.g. improved energy efficiency, CO₂ reductions, and technological innovation in an effective way.

We will arrange a workshop where the results will be discussed with policy makers, industrial and environmental organizations and scientists from in principle all EU countries. The results from the project will be published in approximately 10 reports or articles in international journals (e.g. Energy Policy). Policy recommendations related to both the national level as well as the EU level will be given in 3 policy briefs. The policy briefs will be sent to energy authorities, industrial organizations, environmental movements and interviewed firms in all the participating countries.

1. Objectives

In the project we define a voluntary agreement as a commitment undertaken by firms and/or industrial organisations. The commitment is the result of negotiations with public authorities and/or explicitly recognised by the authorities. Other voluntary approaches such as unilateral declared codes of conduct, fall outside the project. The definition is the same as used for "Environmental Agreements" by European Environmental Agency in the report: Environmental Agreements. The scope of the project is voluntary agreements concluded in the energy sector with industrial organisations and firms with targets like energy savings, increased energy efficiency or reduction in CO2 - emissions.

To evaluate Voluntary Agreements, a number of empirical and fewer theoretical studies have until now been carried out. The main point of interest has been the negotiation process and the written outcome -- the VA-contract. Less interest has been on the implementation process, on the efficiency of the agreements, and on understanding the process from the decision of entering a VA until the implementation and the final outcome, e.g. increased energy efficiency and reduced CO₂-emission.

The aims of the project are:

to improve the understanding of VAs dealing with energy efficiency and CO₂reduction.
to discover under what conditions VAs can be expected to achieve environmental targets in an efficient way.
via the identification of VA best-practices, to give recommendations on how to improve the policy mix to be used to cope with energy efficiency and CO₂ reductions in the industry.

The research questions to be answered are:

What is VA?

what are the companies' and the governments' motives to enter VA?
what are the relations between the actors? Are they supposed to be changed by VA?
what are the differences between VA in different countries and sectors?
what are the enforcement problems, which sanctions are used, how are free rider problems solved?

How does VA work?

How much energy efficiency improvement has been reached during the period a VA is working? Which investments in efficiency improvements had been taken by individual companies during the period VA is working? Which of these investments are strongly influenced by the VA?
are transaction costs influenced through VA?
is asymmetric information between regulator and regulated influenced?
are abatement costs influenced through VA?
are barriers in relation to energy efficiency and scope for action influenced through VA?
is a social change process fostering innovation and adaption of energy efficient technologies and behaviour established or stimulated by VA?
can differences in the performance of VA be attributed to differences between countries, industrial segments, institutional set-up and regulatory traditions?

Is there a role for VA to play in energy policy in the future?

what will the part be on a country level?
what will the part be on an EU level?

Project organisation and task responsibilities

No	Task	Description, interdependence	Responsible partner
A	Develop theoretic model and meta-analysis	Formulate a model to form the basis of B and C	CERNA
B	Framework for country studies	Guidelines etc. for C	AKF
C	Country case studies	Answer research questions on a national level, input for F, G	All
D	Actual outcome, non-intervention case	Quantification of the impact of VAS compared to baseline. Input for F, G.	Utrecht
E	VA in an EU perspective	Answer research questions on EU level, input for F, G	Lund
F	Recommendations	Concept for recommendations on EU level, discussion of findings with experts and policy makers from other EU countries. Input for G	Wuppertal
G	Synthesis, conclusions, policy implications, and management		AKF

2. Work Content

2.1. Research approach and methodology

The research approach it multidisciplinary. The research group consists of political scientist, economists, economic engineers and a physicist. In some of the tasks only one educational background will be represented e.g. economics in task A (a theoretic economic model), whereas the ambition in other tasks e.g. task C (country studies) and F (recommendations) is to draw on all the disciplines represented in the project team.

As voluntary agreements still, especially in the energy sector, is a new policy instrument we have on top of more narrow discipline oriented approaches chosen to use the flexible case - study method.

2.2. Descriptions of tasks in the project programme

Task A. Forming a common theoretical model and meta-analysis

The purpose is to formulate a model of the VA process and a meta-analysis of VA compared with traditional policy instruments, which will give the basis of task C. CERNA and AKF will stand for the development of these models.

The implementation of policy instruments can in general be seen as a three phased process, cf. figure 2, where the participating actors both are at the political and firm level. These two dimensions must therefore be included in an evaluation of policy instruments in general (Krarup, 1997).

The choice of policy instruments in the policy formulation process is not different for agreements than for other policy instruments. However, country specific conditions might explain the choice of agreements instead of other instruments.

In particularly one respect, VAs differ from other policy instruments, that is the second phase. Here government and different interest organizations negotiate about the specific policy design. The agreement design, e.g. the VA contract, is determined by a selected number of actors, e.g. the industry at one side and an energy authority on the other side. Structured negotiations between the regulator and the regulated part are therefore an integrated part and decisive for the content and the working of VAs.

Based on the description outlined in figure 2, we will develop a stringent theoretic model covering as much as the implementation process as possible. This model will be based on a game theoretic approach and a transaction cost approach.

The focus in the transaction cost approach (Glachant, 1996) is firm transactions and information costs under different assumptions of information distribution and structure. The methodological approach takes an outset in the economies of information (e.g. Kennan and Wilson, 1993, and Crawford and Sobel, 1982). In the model firms are seen as rational agents maximising under constraints of limited and asymmetric information, and cost of exchanging and verifying information are made explicit. Preliminary results seem to indicate that voluntary agreements may be more cost efficient than traditional economic instruments under some conditions.

The focus in the game theoretic approach (Hansen, 1996) is to understand the policy outcome of different political settings focussing on information asymmetry and signalling between political agents. Taking an outset in the principal agent and bargaining literature (e.g. Laffont and Tirole, 1993; Spiller, 1990; Binmare, Rubinstern and Wolinchy, 1986) branches of government and interest groups are modelled as rational maximising agents in a policy formulating game. Preliminary results indicate that in some political settings the policy game may result in voluntary agreements even though they reduce cost-efficiency

The two modelling approaches use the same basic methodology (found in neoclassical economics) and are complementary in the way that they address different parts of the analytical problem. Developing a consistent theoretical framework for the empirical analyses from these two methodologically consistent complementary models seems a promising and realistic endeavour.

A number of already existing case studies (these case studies will be a common starting point for the other phases of the project as well) will be confronted with the theoretical models with respect to a few parameters, e.g. the policy priorities of Government and Parliament, the character of the information problem (asymmetric information or shared uncertainty), and character of the regulated industry concerning heterogeneity. Based on the stringent theoretic model the possible outcome of VA will be predicted.

Task B. Framework for the country studies

AKF will stand for the development of a framework which shall create the common basis for the case studies in the five countries.

The economic model and the meta-analysis described (and published in part A will have the obvious advantage that it will be very stringent (in theory and assumptions) in answering some of the research questions, e.g. about transaction - and abatement costs. But it will at the same time have the disadvantage that it will be static, eg. concerning the dynamic nature of technology development, innovation and social change processes, and not able to answer many of the research questions. Additionally, the economic models will incorporate an imminent simplification of a complex socio-economic system of a great variety of actors, bound within multiple interrelations. We will therefore, based on the so-called system model of evaluation research (outlined in figure 2, and see Vedung , 1991, and Jordal-Jørgensen & Larsen, 1995) create a broader framework for the case-studies.

The framework will include key parameters found in the theoretic models and the metaanlysis (task A), but the focus will be more on the targeted firm. From this perspective the VA can achieve dynamic effects, if they enter into a synergistic relation with some of the major factors shaping the activity of the company, such as concentration on core competences, the development of human resources, the intensification of customer relations, and the need to adapt to emerging market conditions. Furthermore the framework will include parameters that are necessary to fulfill task D and E. The framework will take advantage of the multidiciplinarity of the researchers in this proposal. But the framework will obviously be so stringent that it will be possible to carry out the vital comparison of the different country case studies.

Task C. Country studies in each participating country

Based on the theoretical structure and framework described above country studies will be carried out for France, Germany, Sweden, The Netherlands and Denmark. In a later stage (see tasks D and F) our experiences from other projects and discussions of an international workshop will contribute to an enlargement of perspectives to more EU countries.

The country studies will consist of

a formal description of the regulation and the use and design of VAs in each country,
case study of the implementation process, the networks, the investment decisions etc. This will be done by collecting (qualitative) empirical data through interviews, discussions etc. with researchers, relevant actors and institutions involved
and an assessment of the effect of VAs

It is the objective to identify and evaluate the parameters, mechanisms and interactions which are determining the final contribution of VA to, e.g. the national CO₂ abatement strategy. In order to link the political level with real business decisions, energy efficiency activities on the firm level have to be analysed in dependency to the national political, economical, legal, technical and socio-cultural environment. With reference to the theoretical framework, in a first step the country studies will thus give a description of relevant frame conditions with regard to the status quo, before VA has been set up, and to the present conditions affecting the actual performance of the instrument.

In a second step, the analysis will identify the crucial actors involved in the initiation as well as the pursuit of VAs. Special emphasis will be given to their role in the process and the interactions determining their strategies and tasks. For some cases, a divergence of political commitment and concrete implementation engagement can be stated as industrial associations play a major role within the VA scheme.

Taking the different actors into account, in a third step the analysis will provide an assessment of possible and observed impacts of VA on industrial energy efficiency:

on a static level, where the scope for action will be analysed with reference to existing techno-economic potential studies and the related research on barriers and obstacles. It will be investigated, by which means and to which extent VA can contribute to higher energy efficiency by addressing and removing barriers and fostering activity through fully placed incentives.
on a dynamic level, VA has to be seen as an element within social learning processes, which might have a long-term impact on behavioural and institutional change. It will be investigated whether VA can stimulate motivation and the lasting change of priorities of decision makers.

Furthermore, it has to be questioned whether the common action contributes to higher and faster innovation, dissemination and adaption of advanced energy technologies. Additionally, the dynamic analysis will look for indications whether market transformation due to increased demand for efficient technologies can be expected.

For the political assessment of the instrument, especially the latter aspect is of crucial importance. These criteria against which to judge policy instruments is inspired by the five criteria (static concerns, dynamic concerns, general institutional demands, political dimensions, and risks) developed by Bohm and Russell (1985) and Russell and Powell (1997 forthcoming).

Due to this interdisciplinary approach, the country studies will rely on a broad empirical base. For every partner, several national case studies concerning public authorities, regulation bodies, industrial associations, participating companies and other interest groups will be undertaken. The sample of in-depth interviews will consist of experts, decision makers and other actors involved in order to get their personal and subjective perception and judgement of the process.

Task D. Non Intervention Case and Actual Effect

The University of Utrecht will formulate a baseline scenario and give a focussed high quality assessment of the actual outcome of VA. The group will vigorously address the problem of assessing the actual effect of the voluntary agreements (i.e. the energy efficiency improvement attained, the amount of energy saved, the amount of CO₂ emissions avoided). The determination of the actual effect is difficult due to a number of complications (see Korevaar et al., 1997):

it is not always possible to distinguish energy efficiency improvement from structural changes;
it is difficult to determine what would have happened without policy influence (the non-intervention case);
it is not easy to distinguish the effect of voluntary agreements from the effects of other policies.

In order to shed more light on this issue three different approaches will be used.

1. The historical development of energy efficiency will be monitored (ex post).

The historical development of energy efficiency will be determined on the basis of statistical data on energy consumption and physical production of various products in the sectors considered. On the basis of these data a structure-adjusted energy efficiency development will be calculated, (see, e.g. Farla et al., forthcoming). The development should be compared to the non-intervention development. It will be investigated whether the development in other periods or other countries (without intervention) can be used as a reference.

This approach is only possible if the energy efficiency improvement is sufficiently large; hence, it is only applicable for situations where voluntary agreements have been in place for a longer period (as in The Netherlands).

2. The actual change in energy efficiency investment behaviour (ex post and ex ante)

In this approach interviews with decision makers in the companies involved will be carried out. The total effect will subsequently be estimated on the basis of techno-economic analysis. The weakness of this approach is that the estimated effect is based on stated behaviour by companies, which may to some extent be different from the actual behaviour. The advantage is the closer link with behaviour of firms.

3. Simulation of energy efficiency investment behaviour (ex ante)

A third approach makes use of a model that describes the behaviour of firms with respect to investments in energy efficiency equipment. In such a model various parameters will be included, e.g. the investment criteria that firms use, the size of the firm, the energy-intensity of the firm, the profitability of the investment, the size of the investment. A first version of such a model is described in Gillisen et al. (1995). The model will be enhanced and updated with help of the knowledge available with the partners, including especially the knowledge on voluntary agreements that is generated throughout this project. The model will be applied on techno-economic databases of energy efficiency improvement techniques (see de Beer et al., 1994) that exist for some countries. An advantage of this approach is that the effect of various types of voluntary agreements can be compared.

After completion of these three tasks the effect of the voluntary agreements will be assessed within certain accuracy limits, taking into account the strengths and weaknesses of each of the approaches.

Task E. EU study

The university of Lund will through the EU study create a background for policy suggestions on EU level.

The development of VAs on the national level has been treated favourably by European authorities, due to the importance of environmental goals and subsidiarity, and due to the desire to increase the participation of industry in environmental policy making as indicated in the 5th Environmental Action Programme "Towards Sustainability".

However, this development on the national level may result in a divergence of national conditions for industry, in contradiction with the principles of the single market. Thus there is clearly a need to harmonize the approach to VAs as indicated in the Communication from the Commission to the Council and the European Parliament on Environmental Agreements (1996).

VAs may also have a value directly as a European policy tool. In energy policy, the European authorities are often caught in a contradiction between high ambitions and weak mandates. The Union goals for CO₂-reduction are a strong expression of joint ambitions. Nonetheless, some policy tools which are promising form a theoretical standpoint, such as taxation, are confronted with considerable implementation barriers. In these circumstances, there is an evident need for second-best solutions. One such approach could be voluntary agreements.

The project will examine these questions:

has national experience brought forward forms and methods of VAs which could be transposed to a European level?
does success at the national level depend strongly on specific national tradition and culture (in cooperation with C) or is it possible to identify some common denominator, which may indicate a potential for VAs on a European level?
do theoretical models show any advantages for VAs on the European level, compared to the national level?
what are the potential partners for European authorities in the implementation of VAs?
what kind of mandate do the European authorities need, in order to successfully pursue a policy of VAs?

Task F. Recommendations

The national case studies will provide insights in the interdependency of the performance of VA with their respective design and national framework. Accordingly, a discussion and larger dissemination of this policy instrument will have to take country specific preconditions into account. For that reason, the knowledge of actors and socio-economic interrelations gained within the national case studies will be used as a basis for recommendations.

Together with the specific results of the country studies, the proposals will be presented and discussed at an international workshop, providing the possibility for European experts, representatives from industrial and environmental organisations and policy makers to debate and develop the conclusions and recommendations derived.

Wuppertal will carry out the workshop.

Task G. Policy implications

On the basis of A to E suggestions for guidelines and criteria for policy strategies using VAs on national and EU level will be put forward. It will mainly consist of

characterising a set of contrasted VA models. Indeed, in the European Union, energy-related VAs are diverse and a prerequisite for deriving policy recommendations is to identify the set of available options.
for each type of VAs, identifying contexts in which it is efficient. Efficiency here refers to several dimensions: cost efficiency, dynamic efficiency (innovation incentives) and behavioural changes (both in industry and public bodies). Contexts will be qualified in terms of industrial structure, technological context, energy intensity in production, proximity with final markets, institutional setting, national policy culture.
characterising the adequate articulation between voluntary agreements and other policy approaches. As a matter of fact, VAs are rarely used in isolation. They are part of a policy mix in which they bring their advantages. Reciprocally, this policy mix limits their potential drawbacks (in particular, the lack of formal sanctions in case of non compliance). For instance, in Denmark, VAs are very tightly linked with a taxation scheme: firms entering into a VA get a tax rebate and firms not fulfilling the agreement lose the rebate.
Based on the characterisation of national styles in VAs carried out in B, addressing the question of potential competition distortions within the EU due to diversity in national VAs. More generally, we will question the opportunity to move towards one single European model of Voluntary Agreements in comparison with the current diversity.

No	Content	Objectives	Main contributing partners	Methods and theories
A	Develop theoretic model and meta-analysis	To formulate a model of the VA process and a meta-analysis of VA compared with traditional policy instruments	CERNA AKF	Economies of information and game theory. Interviews of researchers, literature studies, model development
B	Framework for country studies	Create the common basis for case-studies	AKF	The system model of evaluation research. The framework will include and expand the model developed in task A.
C	Country case studies	Answer most of the research questions on a country level	All	Theory of case study research (e.g. Yin 1994)
D	Actual outcome, non-intervention case	To formulate a baseline scenario and give a focussed high quality assessment of the actual outcome of VA	Utrecht	Statistical analysis of time series. Simulation of firm decision making
E	VA in an EU perspective	Create background for policy suggestions on EU-level	Lund	E.g. legal analyses of the possibilities for VA within the EU
F	Recommendations	Recommendations to other EU countries	Wuppertal
G	Synthesis, conclusions, policy implications		AKF	Based on task A to F

3. Project deliverables and milestones

3.1. List of deliverable items

Each task will be finished by a report or working paper, as the Gantt-chart above shows. The five participating institutes are responsible for the deliverables under the respective tasks as follows:

	AKF	Wuppertal Institut	Utrecht University	Cerna	Lund University
A. Theoretic model and meta-analysis				1
B. Guidelines for case-studies	2
C. Country case-studies	1	1	1	1	1
D. EU level
E. Non-intervention case, actual effect			1
F. Recommendations		1, 3
G. Synthesis, conclusions and policy implications	1	(1)	(1)	(1)	(1)

1 : Report
2 : Working paper
3 : Responsible for the arrangement of the workshop

3.2. Major milestones

The major milestones appear from the diagram of the Project Overview and the Work Plan. They are linked to the deliverables i.e. the reports and working papers described above in section 3.1. with a timing described in the project overview.

3.3. Mid-term assessment and review criteria

A mid-term assessment report on the progress of the research will be submitted at the end of the 12th month of the project. At the mid-term meeting scheduled in the 13th month we will consider the following objectives:

Task A: Report on common theoretical structure and meta-analysis

Task B: Working paper on guidelines for country case studies

Task C: Experiences from at least one case study

Other tasks: The relation between the progress in the project and the remaining funds.

4. The partnership

4.1. Overview of the consortium

Organisation	Type	Number of employees	Country	Activity	R&D function in project
AKF	ROR	75	DK	Research	Coordinator Formulate general model Case study Synthesis, conclusions
Wuppertal Institut	ROR	90	DE	Research	Case study International workshop
Utrecht University	UNI	200	NL	Research	Case study Baseline, alternative scenarios
CERNA	ROR	500	FR	Research	Formulate general model Case study
Lund University	UNI	2500	SE	Research	EU level Case study

5. Exploitation policy

5.1. Exploitation of the results for the benefits of the EU competitiveness

Regarding energy issues, VAs are seen as an industry-friendly way to reach energy efficiency improvement. This latter point is especially crucial given the need to preserve the competitiveness of the European industry.

In this context, the communication 96/651 from the Commission to the Council on the use of environmental agreements in the EU provides a set of guidelines for the development of VAs (both at the Member and EU level). In this regard, our project which, inter alia, characterises the diversity in national VAs will give elements to ease the effort to harmonise the VA approach in the EU. This question is ultimately related to the Subsidiarity Principle: what features of the national VAs approach need to be harmonised at the EU level? This question is far from being easy to answer. Indeed, it is often argued that the design and performances of VAs are deeply affected by national peculiarities in regulatory traditions. Besides, a related expected benefit of our project is about the potential role for VAs signed at the EU level.

The characterisation of VAs in different Member States will also allow to identify potential competition distortions the VAs might cause. Indeed, there is a risk that VAs in certain circumstances can distort competition by favouring firms within the agreement, e.g. domestic firms.

Apart from environmental benefits, other potential impacts are:

Economic: VAs are said to be a potentially cost effective way to improve energy efficiency by leaving the firms choosing themselves the way to achieve environmental targets. The project will examine in which context and under which conditions this assumption is true.

Industrial: Especially concerning high energy consuming industries, VAs seems to be a policy approach allowing to pursue ambitious environmental objectives without damaging the competitiveness of the European industry. Moreover, the project could provide insights about how the VA approach can promote the exploitation of "no regret energy efficiency potentials" in the industry (i.e. energy efficiency improvements which are profitable for firms).

Behavioural : One key expected benefit of the VA approach is behavioural changes of the industry vis-à-vis energy efficiency (i.e. promotion of pro-active attitude). But positive behavioural changes can also be important in regulatory bodies allowing a better integration of environmental policies with other policy dimensions.

During the project the experiences and results will be communicated and discussed with relevant representatives from the industry and political level. To keep them updated about the results three policy briefs will be published during the project. The experience and results about VA's obtained in this project will be relevant for other sectors.

6. Dissemination policy

The VAIE dissemination task includes two important elements:

a presentation to the actors involved of a research-based reflection on their own experience with voluntary agreements, in the form of a synthesis, analysis and evaluation of this experience.
a dissemination to the actors of proposals for improved practices, based on the results of the research.

A key target for both these elements is European industry, understood (1) as the individual firms involved in voluntary agreements, (2) other firms likely to become involved, (3) the relevant national industrial organisations, and (4) industrial organisation on the European level. Reflections on existing practices and proposals for improved practices, based on the research of the project, will contribute to more complete knowledge about voluntary agreements, including their potentials and problems, in these industrial circles. An improved awareness and understanding in industry of these potentials is essential for the broader European use of voluntary agreements, insofar as this requires a pro-active involvement of industry at many levels.

An important part of this reflection and dissemination will happen directly as part of the case study methodology. Most case studies take place directly in industrial enterprises involved in voluntary agreements. The critical examination and discussion of their experience and results with independent researchers, as part of the research process, is expected to provide an important stimulation for the actors involved directly in these industries. These actors are important agents of dissemination. Due to their advanced experience, and their position inside industry, they have a decisive role in the deepening involvement of their own firms in voluntary agreements, and also as role models and agents of change in relation to industrial colleagues not yet involved in such agreements.

A more formal dissemination of results to industrial actors will happen during the project in the form of policy briefs, summarising major findings in a concise manner. These briefs will be addressed directly to key actors in companies involved in voluntary agreements, as well as to industrial media, and industrial organisation at national and EU level.

National workshops, organised in cooperation with industrial organisations, will serve as an opportunity to collect a broader circle of representatives from different branches and sectors and confront executives with the chance and limitations of the VA approach.

On a European level, existing structures of industrial self-organisation such as European umbrella organisations will be addressed. The "Responsible Care Programme" of the European chemical industry is an important illustration of the type of platform which will be used for this dissemination activity. The (regular) workshops or meetings taking place in such frameworks will serve as an occasion to present research findings in a way adapted to executive concerns and needs.

Another important target for the dissemination of results is policy makers and opinion leaders, particularly at the national level, but also at the regional and EU level. The country studies will, besides the industrial actors, involve multiple actors of this type at the national level (national policy makers, intermediate agents/institutions, industrial associations, branch experts, company representatives and social stakeholders (environmental groups etc.)). Due to these links to policy makers and opinion leaders, the evaluation of existing VA schemes is characterised by a strong implementation oriented focus incorporating the perspective of practical experience. The research will use existing and will open new contacts to such target groups in the respective countries.

A more formal dissemination to policy makers and opinion leaders will take place through the same policy brief, as is addressed to industry. Seminars and other meetings sponsored by the national energy authorities or other actors will be used as fora for presentation and discussion of results with these actors. A particular emphasis will be on evaluation and discussion of the performance of national VA schemes compared to other European countries studied, in order to identify opportunities for modification and harmonisation.

Policy makers, relevant institutions and multiplicators from other European countries, and at the EU level, will be addressed through the international workshop organised by WI.

A third target for dissemination of results is obviously the scientific community. It will be addressed via publications in suitable media and presentations at the ECEEE Summer Study, and other national and international conferences. Such dissemination will also reach those parts of policy maker and opinion leader targets so deeply involved that they read scientific journals and attend scientific conferences. The ECEEE summer studies usually has a strong presence from the national energy agencies of several EU countries, and also a few attendants from industry.

Concerning the dissemination task, the project will maintain links to other research activities concerned with the same issues. Mutual attendance at dissemination workshops and other forms of cooperation in dissemination activities will ensure exchange and diffusion of results into target groups addressed by the other consortia.

More concretely, the project will have the following outputs:

1 Analytical framework for specific case studies. In the first phase of the project a theoretic economic model will be developed. A meta-analysis will be carried out based on this model.

2 Country case study reports. The case study will be based on a common multi-disciplinary framework. In different countries (Denmark, France, Sweden, Germany and the Netherlands) an in-depth analysis will be made of the content, working and efficiency of the different VAs. This analysis will be done with the results of different case studies. For each country a report will be made about the results of this analysis.

3 EU study report. A separate report will deal with information of, e.g. the structures of the EU, European branch organisations, juridical possibilities for sanction on EU level.

4 Policy recommendations. On the basis of the results of the country case study reports and the EU study report, policy recommendations will be formulated. These recommendations will deal with the implementation of VA on EU level, implementation of VAs in countries which do not have VAs in energy policy, and the improvement of VAs in countries which already have VAs in their energy policy.

5 International workshop. In a workshop the results will be discussed with policy makers and other scientists from other EU countries and other countries. The workshop will result in a report containing not only proceedings but also a further elaboration on the discussions at the workshop.

6 Several international articles. The results of this project will also be described in several articles in international journals (e.g. Energy Policy). In these articles different issues will be discussed, like the theoretical approach, the differences between the efficiency of the VAs in different countries, the factors that explain the (non-)efficiency of VAS.

7 Policy Briefs

To key actors, i.e. industrial organisations and policy makers in all EU countries and at the EU level.

7. Related projects

Concerted Action on VA (CAVA). Project for the DG XII Environment and Climate Programme. Coordinated by CERNA (No PL 97-0060)

Negotiated Agreements as a Policy Instrument: Theoretical Analysis, Empirical Analysis and Policy Options (NEAPOL). Project for the RTD Programme Environment and Climate. Coordinated by the University of Gent (No: PL 97-1215).

Interdisciplinary analysis of Successful implementing of Energy Efficiency in the Industrial, Commercial and Service Sector (InterSEE) (NO.:JOS3-CT95-0009). Coordinated by Wuppertal Institut.

Study on Voluntary Agreements Concluded Between Industry and Public Authorities in the Field of the Environment. Project for DGIII. Coordinated by COWIconsult.

An Assessment of the Environmental Effectiveness of Voluntary Agreements. Project for the European Environmental Agency. Coordinated by Ecotec.

An academic working group: "Voluntary approaches in the field of the environment". This activity is part of the research network for market-based instruments for a sustainable development (PL 95-0326), sponsored by DG XII.

Joint environmental policy-making: new interactive approaches in the EU and selected Member States (JEP), Contract no. CT96-0227.

New instruments for sustainability: the contribution of voluntary agreements to environmental policy. Contract No. CT96-0268.

Research network for market-based instruments for sustainable development. Contract No. CT96-0284.

The effectiveness of instruments for environmental policies in the field of industry: regulating packaging and transport of hazardous waste. Contract No. CT96-0295.

We believe that our project, Voluntary Agreements - Implementation and Efficiency (PL97-0152) differ from these projects in several ways. We focus on the whole implementation chain from the choice of voluntary agreement as policy instrument to the outcome, e.g. increased efficiency. We also carry out theoretic work, especially in task A. before we make the country case studies. The project has a clear delimitation as we only look at VAs concluded by industry and public authorities, and where the targets are related to energy issues e.g. CO₂-reductions, improved energy efficiency and reduction of barriers for new technology. By this the project will be able to discover differences and similarities between VAs in different countries but within the same sector and with the same actors involved, the national authorities and the industry.

We will as soon as possible contact all the coordinators.

The project and especially the case studies will be coordinated with all the above mentioned projects.