Multiple criteria analysis of policy alternatives to improve energy efficiency in industry in Russia

Russia set an ambitious energy efficiency goal requiring involvement of all sectors of the economy. It requires specific and efficient public policies at all levels of governance. However, decision making in the energy sector in Russia is complex and characterized by multiple policy objectives, conflicting interest groups and a lack of available quantitative data. This study investigates the decision problem of energy efficiency improvements in the industrial sector – a policy proposed by the Moscow City Government. Multiple criteria analysis (MCA) is tendered as an appropriate evaluation tool. As limited studies exist of the application of MCA in Russia, none – for regional energy systems development, this paper provides a novel solution for regional public management. We adapted the MCA PROMETHEE method and undertook an expert survey to evaluate the policy proposal and develop recommendations. This paper describes the adjustment of the evaluation tool to the existing institutional structure and decision making procedures in Russia. It provides a discussion about the participation of stakeholder groups and determination of policy objectives, options and criteria. The analysis leads to a ranking of preferred policy alternatives to assist policy selection and energy efficiency program development. From this, we recommend partial subsidization of the costs of industrial organisations to implement contracts with energy service companies as the best performing option. More importantly we demonstrate the applicability and usefulness of MCA as a decision support tool for Russian public decision-making. Its wide application is expected to improve public management at both regional and federal levels.