ECONOMICS OF ENERGY-CONSERVATION MEASURES IN GREECE

A method is developed for analysing the cost-effectiveness of energy-c onservation measures. The method reconciles social preferences with th e profit-seeking objectives of private investors. An important externa lity to the energy system is environmental protection, which is consid ered through the avoided cost approach. An LP-model is used to examine structural changes to the primary supply side of the system. The empl oyment of an energy engineer (EE), who will implement energy housekeep ing procedures for Greek industry, is an example of application of the method. The results show that the measure offers very short payback p eriods, making its adoption an attractive investment.