Analyzing the effects of Energy Action Plans on electricity consumption in Covenant of Mayors signatory municipalities in Andalusia

Abstract

The Covenant of Mayors (CM) is an initiative by which towns, cities and regions voluntarily commit to reduce their CO2 emissions beyond the European Union climate targets, through policies promoting energy saving and renewable energy. The aim of this paper is to analyze whether joining the CM is reducing municipalities’ electricity consumption and therefore their emissions. This analysis is made for municipalities in Andalusia, the region of Spain with more signatories. For this purpose, the evolution of total, household and public administration electricity consumption from 2001 to 2012 is analyzed by using panel data econometric techniques. Obtained results show that the CM is having a positive effect on the electricity consumption reductions, since the municipalities have greater rates of reduction of electricity consumption after signing the CM. Therefore, it may be considered that it may be appropriate to promote policies that incentivize the municipalities to join the CM and to develop their action plans, as this can reduce their electrical consumption.