Climate stability and behavioural change: the limitations of economic and regulatory instruments

Stabilisation of atmospheric concentrations of greenhouse gases, as proposed by the 1992 Earth Summit, implies massive behavioural changes by firms and consumers. Case studies of three key sectors—domestic space heating, domestic appliances, and personal transport—suggest that neither economic instruments nor regulatory controls would, in themselves, be sufficient to bring about the necessary investment in energy efficient products and processes. Attention is focused on specific features of the UK economy which inhibit energy conservation, such as the price sensitive nature of UK markets for consumer durables and the pervasive influence of short‐termism on business calculations.