The green deal

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The Green Deal is a policy launched by the Department of for Energy and Climate Change in the United Kingdom that aims to take a large step towards greater energy efficiency. This measure was initially discussed in 2011 but officially launched in June of 2012. The United Kingdom has an energy consumption rate of nearly 3000 kgoe per annum, which is reasonably high (See Appendix 1). The deal ultimately provides consumers with energy efficient techniques that would cost less than standard equipment in the long term. The Green Deal encourages consumers to do this as it provides them with loans, which can be paid back through the energy bills (Richards). Using energy inefficiently is a negative externality as the activity of energy wastage imposes costs on society, as there is a shortage of nonrenewable energy. There is a high social cost, as the private cost is high as energy wastage is inefficient and external costs include the cost to society by making energy scarce. This also eventually is the path to sustainable development, which is one of the macroeconomic objectives of every economy (Pettinger). At the end of this analysis, this report will directly address the research question to make a concluding statement, “To what extent was the UK government successful in reducing the externality of energy consumption in the United Kingdom through the Green Deal?” The government of the United Kingdom believed this measure would be effective in reducing the externality of energy consumption.

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In theory, the concept of the Green Deal seems perfect. The homes in Britain are considered ‘draughty’ and by implementing energy-saving techniques such as insulation, draught proofing, double-glazing these homes can become more energy effici...

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... 6 Dec. 2012. Web. 13 Mar. 2014. .
Shankleman, Jessica. "Green Deal: Just 133 Households Have Signed up for Energy Efficiency Scheme." Theguardian.com. Guardian News and Media, 20 Aug. 2013. Web. 14 Mar. 2014. .
United Kingdom. Department of Energy and Climate Change. Gov.uk. N.p., n.d. Web. 13 Mar. 2014. .
Vaughan, Adam. "What Really Happens in a Green Deal Assessment?"Theguardian.com. Guardian News and Media, 25 Feb. 2014. Web. 14 Mar. 2014. .
"What Is the Green Deal?" USwitch. N.p., n.d. Web. 14 Mar. 2014. .

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