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Energy Efficiency Projects and Local Budget: From Lacking Revenues towards Successful Story for Sustainable Future

In the theory the public sector is a crucial actor in promotion and implementation of energy efficiency measures. In Croatian practice this sector has just started to implement cost-effective measures which will generate energy and financial savings. This paper focuses on the successful examples of Croatian cities and counties that have been started with energy efficient public lighting, energy efficient projects, efficient water use, sustainable wastewater management and sustainable waste management as crucial parts of the concept of sustainable development. The objective of this paper is to demonstrate not only financial savings achieved in the local budgets as a result of the implemented energy efficiency projects, but also to point out concrete outcomes of implemented energy efficiency projects to improve the quality of life in selected cities and counties in Croatia. To fulfil the goal of the paper, after the introductory explanation, the second part of the paper will describe the basic types and characteristics of energy efficiency projects undertaken in selected Croatian cities and counties. Third part of the paper will give explanation on energy related expenses and energy efficiency projects in local budgets. The focus will be on explanation how improved energy efficiency projects will result in reduced energy related expenses, hence reduced overall annual expenses in local budgets. To provide more evidences, structure of selected local budgets by economic and functional classification for period 2002-2010 will be given. Correlation between implemented energy efficient projects and local budget will be presented in the fourth part of the paper. This means that a thorough analysis of achieved results and concrete outcomes of the implemented energy efficiency projects for improvement of the quality of life in several Croatian cities and counties will be conducted. Based on the data availability, performance indicators for measurement of achieved results and outcomes at the local and county level will be defined. Instead any conclusion, the results presented in this paper will serve as a good example for other local and regional self-government units in Croatia by providing a detailed insight in characteristics of energy efficiency projects, cost and financial savings and their relation to successfulness of local sustainable development. In addition, the paper will give policy recommendations for local decision-makers in area of different measures in order to improve sustainable development.

energy efficiency; local budget; sustainable development; local and regional self-government units; Croatia

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