Building Markets for Energy Saving Equipment and Modelling Subsidy Strategies in Tourism Dependent Economies

The paper presents selected results of a dynamic non-linear model that simulates critical factors in the diffusion of demand-side energy saving equipment. The modelling exercise is customised to the particular characteristics of the Greek islands of the Aegean Sea. Through a sample set of alternative diffusion scenarios, it tests socio-economic and techno-economic system behaviour providing helpful insights in market development and programme design in the wider energy policy debate on effective introduction of new technology. The paper discusses the usefulness of simulation modelling along critical interactions and feedbacks among policy makers (government), the utility operator, consumers and the adopters.