3.2.4 Institutional DimensionThe EISD do not yet include institutional indicators. These indicators are the mostdifficult to define <strong>for</strong> two reasons. First, they tend to address issues that are, by nature,difficult to measure in quantitative terms. Many of these issues relate to the future andrequire dynamic analysis based on projections of energy production, use andinvestment. Second, the variables measured by institutional indicators tend to bestructural or policy responses to sustainable development needs.For example, institutional indicators might help to measure not only the existence butalso the effectiveness of a national sustainable energy development strategy or plan,energy statistical capacity and analytical capabilities, or the adequacy andeffectiveness of investments in capacity building, education or research anddevelopment. Institutional indicators could also help to monitor progress towardsappropriate and effective legislative, regulatory and en<strong>for</strong>cement institutions <strong>for</strong>energy systems.Infrastructure is the backbone of any national energy system. Countries need tomonitor the state of their major energy infrastructures to ensure a sustainable energyfuture. Many countries now depend on major energy infrastructures that are obsolete,inefficient, insufficient or environmentally unacceptable.3.3 Accommodating National Sustainability and <strong>Development</strong> PrioritiesSome caveats are in order about the use of the EISD and their interpretation <strong>for</strong>monitoring progress towards sustainable energy development. Since the publication ofthe Brundtland Report, countries have begun to define their own sustainabledevelopment objectives and priorities, reflecting national resources and needs,aspirations, and social and economic conditions. <strong>Sustainable</strong> development strategiesmust there<strong>for</strong>e be structured to accommodate a wide range of definitions of whatdesirable sustainable development can encompass, and monitoring the success of suchstrategies through indicators must also avoid rigid definitions or judgements aboutwhat is universally desirable and necessary.For example, it is possible <strong>for</strong> an economy to be sustainable without developing. Thiswas true of hunter-gatherer groups living twenty thousand years ago. It is alsopossible <strong>for</strong> a country to develop without its development being sustainable. Thiswould be true of a country completely dependent on a lucrative and highly effectivefishing industry that generates high income levels, thus enabling investment inschools, hospitals, art galleries and welfare services, but that also exhausts the fishstocks. This country would have achieved a degree of development, but thatdevelopment would not be sustainable since it is destroying the country’s source ofincome.However, it is also true that the depletion of resources does not necessarily implyunsustainable development. By definition, if an energy source is not renewable, anyuse of it is irreversible. But this does not mean it should never be used. Consider acountry with a natural gas field that uses all of the gas in a way calculated to bring infunds to build up its economy and technology, and then moves on to another <strong>for</strong>m ofenergy — <strong>for</strong> example, renewables or imported fuels. This may represent sustainabledevelopment. The depletion of the gas field by one generation does not necessarilyjeopardize the energy supply <strong>for</strong> future generations.20
Paradoxically, the economic and environmental crises of depletion in the past have allcome from the exhaustion of renewable resources — overfishing, overgrazing, cuttingdown too many trees, etc. This highlights the importance of not using renewableresources at a rate faster than their natural replenishment rates.The indicators, with one possible exception, do not individually distinguish between afocus on sustainability or on development. The possible exception is SOC1 (share ofhouseholds without electricity or commercial energy). This is clearly an indicator ofdevelopment only and not sustainability. The rest of the indicators could mark either.However, used together and in the context of a country’s individual circumstances,they can be used to show progress towards sustainable development and attainment ofthe goals defined by the country’s particular sustainable development strategy.3.4 Establishing Links and CausalityIf indicators are to be used to guide policymaking and strategic decisions, then theymust provide some notion of where to apply policy pressure and where to initiatechanges that can bring desired results. Establishing links and some idea of causality isthus an important feature of policy monitoring with indicators. Seeing trends withoutunderstanding how to affect them is not useful <strong>for</strong> strategic development.A complete understanding of how each individual economic activity influences allothers and fits into the whole is not yet in reach. Nonetheless, one can establish usefulgeneral rules of cause and effect to analyse economies and guide policymaking. Theindicators can help us understand some of the effects that energy production and usehave on the economy and the environment. By linking these indicators and monitoringchanges in their values, one should be able to see the effects that shifts in energyproduction or use have on the economy, society and the environment.In general, a cause–effect framework allows policymakers to track pathways andsubsidiary effects from the point of a policy’s implementation to its impacts in orderto discern linkages among energy and to target policies more specifically.A model of cause and effect was initially designed to identify and categorize the EISDusing a driving <strong>for</strong>ce, state and response (DSR) framework. Similar models are usedby international organizations such as the Organisation <strong>for</strong> Economic Co-operationand <strong>Development</strong> (OECD), the International <strong>Energy</strong> Agency (IEA), the UnitedNations Department of Economic and Social Affairs (UNDESA), Eurostat and theEuropean Environment Agency (EEA). These include, <strong>for</strong> example, the pressurestate-response(PSR) model developed by the OECD <strong>for</strong> categorizing the nature ofdifferent environmental indicators and the DPSIR (Driving <strong>for</strong>ces, Pressures, State ofthe environment, Impacts, and societal Responses) framework developed by the EEA.The PSR framework describes indicators <strong>for</strong> environmental pressures as ‘direct’ and‘indirect’ pressures exerted on the environment. These indirect pressures are calleddriving <strong>for</strong>ces in other models. The indicators <strong>for</strong> the environmental state relate toenvironmental quality and the quality and quantity of natural resources. The indicators21
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• IAEA, 1997. Joint Convention on
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EEA, 2002. Review of Selected Waste
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FAO, 1988. Energy Conservation in A
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IEA, 2000. The IEA Energy Indicator
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OECD, 2001. Key Environmental Indic
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UNEP/WHO, 1992. Urban Air Pollution
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