Wheat, chaff and conflicting definitions in market transformation

Abstract

The term Market Transformation developed from the concept that programs that concentrated on changing the way energy efficiency was received in markets would lead to larger, longer lasting, better accepted, or more cost-efficient efficiency improvements. Programs could alter the relationships between market actors--consumers, retailers, distributors, producers, suppliers, etc.--rather than just addressing consumer demand, and thus might have longer-lasting effects. Market transformation was seen as one way, but not necessarily as the only way to obtain energy efficiency improvements. Many policymakers agreed, and have directed energy efficiency funding toward market transformation. In order to make the concept useful as a means of deciding between competing projects--to operate it as a prioritization tool and to begin to develop programs from a basis in theory, this paper lists proposed definitions, describes multiple perspectives, and proposes operational criteria for market transformation. The descriptions, definitions and criteria are intended to contribute to greater mutual understanding, and thus to the accomplishment of the overall objectives of market transformation.