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Evaluating energy efficiency policy measures & DSM programmes

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... Being a relatively new instrument, case studies of building certificates and labels was scarce in the literature and this situation was aggravated because their effect is difficult to separate from those of building codes. Only two programs could be quantitatively evaluated in our study[23,52], and even these do not clearly separate the impacts from those of building codes. The environmental effectiveness of the building certificates programs was found similar to that of building codes, probably as a result of the problems with separation. ...
... The environmental effectiveness of the building certificates programs was found similar to that of building codes, probably as a result of the problems with separation. The cost-effectiveness of a Danish program[23]was found particularly high; however — as stated before — individual values should not be used with care. Nevertheless, it is likely that building certificates alone and in combination with building codes also produce net social economic benefits and their main economic benefit may be to increase the value of properties[81 ]. ...
... The cost-effectiveness of awareness raising and information programs varies widely, from exemplary low costs (such as[53,68]) to programs with net societal costs[23]. At the same time, the environmental effectiveness is moderate, in the range of 0.005–5 TWh, and unrelated to the size of the country where the programs took place. ...
Article
Energy efficiency policies have the unique capacity to contribute to a more sustainable energy future at an economic net benefit even when co-benefits are not included in the evaluations. The purpose of this paper is to present quantitative and comparative information on the societal cost-effectiveness and the lifetime energy savings of all light eight building energy efficiency policy instruments. While certain instruments, such as product standards and labels are shown to be able to achieve the largest energy savings, from a cost-effectiveness perspective, it is not possible to clearly prioritize the policy instruments reviewed. Any of them can be cost-effective if selected, designed, implemented and enforced in a tailored way to local resources, capacities and cultures.
... To some extent, the situation described above is consistent with the fact that there are a limited number of systematic energy (efficiency) policy evaluation studies and that practices in the field of energy (efficiency) are not harmonised (see e.g. Blok, 2006;Taylor and Jollands, 2007;Vreuls et al., 2005). To systematically capture the impact and outcome of energy-efficiency policy instruments, evaluation frameworks have been developed (see Harmelink et al., 2007;Khan et al., 2006;Sebold et al., 2001;SRC et al., 2001;Vreuls et al., 2005). ...
... Blok, 2006;Taylor and Jollands, 2007;Vreuls et al., 2005). To systematically capture the impact and outcome of energy-efficiency policy instruments, evaluation frameworks have been developed (see Harmelink et al., 2007;Khan et al., 2006;Sebold et al., 2001;SRC et al., 2001;Vreuls et al., 2005). 4 However, energy-efficiency policy evaluation studies have traditionally targeted the narrow area-albeit challenging to quantify-of impact, in terms of energy savings, emission reductions and saving costs (see e.g. ...
... 4 However, energy-efficiency policy evaluation studies have traditionally targeted the narrow area-albeit challenging to quantify-of impact, in terms of energy savings, emission reductions and saving costs (see e.g. Boonekamp, 2005;Gillingham et al., 2006;Harmelink et al., 2007;Vreuls et al., 2005). Some work also highlights the need to assess policy outcomes, i.e. the changes in the energy system affected by the policy instrument (Neij and Å strand, 2006). ...
Article
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Recent years have witnessed regained political momentum on energy efficiency and interest in establishing markets is growing. As a result, Tradable White Certificate (TWC) schemes of differing design have been implemented in Great Britain, Italy and France. Much attention is being paid to justifying and evaluating such schemes. In this paper, we develop and apply a multi-criteria framework for evaluating TWC schemes—an approach that attempts to cover their individual design features. A broad evaluation is conducted regarding energy-saving and environmental effectiveness, economic efficiency, cost-effectiveness, transaction costs, political feasibility, administrative burden and technical change. The results show the design and performance of TWC schemes to be case and context-specific, and generalisations are thus inappropriate. This evaluation supports the cost-effectiveness modelled for the British scheme and the assumption that a TWC scheme is an economically efficient policy instrument. For the other, more complex TWC schemes, more data and experience are needed to judge their ex-post merit. On the whole, the proposed multi-criteria evaluation requires considerable data and complementary methods. However, the framework improves the understanding of the broad effects and attributes of TWC schemes. It deals with various empirical and normative aspects that can be applied in their evaluation.
... The 'Model Energy Efficiency Program Impact Evaluation Guide' (Dietsch, 2007) defines the baseline as what 'Would have occurred had the program not been implemented'. In the 'Evaluation Guidebook Volume I' (Vreuls, 2005) the baseline is defined as the answer to 'What would market actors who participated in (or who were exposed to) the programme have done in the absence of the programme?'. Likewise is the baseline energy consumption understood in the 'International Performance Measurement and Verification Protocol, IPMVP' (Kromer, 2007). ...
... The variables relevant for the determination of the baseline energy consumption (here load and operating hours) are defined and retrieved from e.g. market analyses, customer surveys, codes and standards or official statistics (Reed et al., 2007;Nilsson et al., 2008). Vreuls (2005) categorises the major strategies for assessing the values of the variables in cross-sectional or quasi-experimental methods, historical or time-series analysis, self-reporting of programme influence and references to codes and standards. Some approaches for the determination of the baseline use a combination of these mainly data-based approaches with expert opinions and lessons learned from past experiences to model the future development of the energy consumption without the programme effects. ...
... Some approaches for the determination of the baseline use a combination of these mainly data-based approaches with expert opinions and lessons learned from past experiences to model the future development of the energy consumption without the programme effects. Vreuls (2005) refers to this proceeding as backcasting and other normativ approaches. ...
Article
One of the central variables in bottom-up energy efficiency and saving calculations is the energy consumption baseline. In the evaluation of energy efficiency measures, developing this baseline is a challenging task, which may involve serious problems, especially if the energy service of the analysed subject has changed while the energy efficiency measure was being implemented. In this paper we present a formalised concept of the process of developing the baseline that is flexible enough to deal with various difficulties, such as changes in the levels of the energy services involved. We also discuss the most relevant options for deriving the necessary variables.
... The evaluation of energy efficiency programs started thirty years ago. Significant experience has been acquired, specifying the issues to address (Vine, Misuriello & Hopkins 1994) and gathering information to build rich methodological materials, from the first manual (CPUC and CEC 1987) to current reference guidebooks (e.g., CPUC 2006, IPMVP 2002, SRCI 2001, Vine and Sathaye 1999, Vreuls 2005). This has resulted in developing a community of evaluation experts, with regular sharing events, such as conferences sponsored by the International Energy Program Evaluation Conference (IEPEC), the American Council for an Energy Efficient Economy (ACEEE), and the European Council for an Energy Efficient Economy (ECEEE). ...
... The evaluation of energy efficiency programs started thirty years ago. Significant experience has been acquired, specifying the issues to address (Vine, Misuriello & Hopkins 1994) and gathering information to build rich methodological materials, from the first manual (CPUC and CEC 1987) to current reference guidebooks (e.g., CPUC 2006, IPMVP 2002, SRCI 2001, Vine and Sathaye 1999, Vreuls 2005. This has resulted in developing a community of evaluation experts, with regular sharing events, such as conferences sponsored by the International Energy Program Evaluation Conference (IEPEC), the American Council for an Energy Efficient Economy (ACEEE), and the European Council for an Energy Efficient Economy (ECEEE). ...
Article
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With the "think global, act local" trends, local levels are taking an increasing role in the implementation of action plans, especially in the field of energy efficiency. An inventory of local energy efficiency operations in France confirmed a significant expansion of these activities, but also highlighted how rare their evaluation is, although a rich methodological evaluation material is available. The research question for this study was then how to fill the gap between theory and practice. This was addressed through studying the issue of evaluation use. The first step was to find in the evaluation literature the key components of evaluation use and the success factors to overcome the barriers to evaluation practice previously identified. This was used to adjust our evaluation methods and approach, and then to apply this to a particular case study. Key success factors for evaluation use were highlighted, such as the constructive and regular contacts between evaluators and program partners, and presenting the evaluation as a win-win collaboration. Finally, the main evaluation use was not to quantify the results of the operation, even if it was initially the most important stakeholder expectation, but to learn how to work together, how to supervise and use an evaluation, and how to improve the operation management and the operations themselves. This way, the evaluation really appears to be a learning-by-doing tool for all stakeholders involved in the implementation of local energy efficiency activities.
... One of the projects in the International Energy Agency's (IEA) Demand Side Management Programme performed an overview study on energy efficient program evaluation in 2005 and looked at general frameworks for measuring and verifying impacts as well as evaluating effectiveness and efficiency of policy measures (Vreuls 2005). Specific to impacts from standards, labeling, and incentive programs, Table 7 shows that there is overlap between the inputs, outcomes, and impacts as defined by the IEA. ...
... The Canadian Appliance Manufacturing Association conducts confidential data surveys for each manufacturer to submit shipment data on their sales of major appliances. The study assumes a frozen baseline for calculating energy savings resulting from MEPS (Vreuls 2005). ...
... energy consumption, health problems, etc.) (see e.g. EEA, 2001;Fischer, 1995;Hildén et al., 2002;Vreuls et al., 2005). ...
... Th seems to be consistent with the historical development of energy efficiency policy in general, whe we have witnessed a substantial use of economic instruments, such as rebates, su s, they is re bsidies, taxes and soft loa stment e is a tax rebate and resultin sents costs ; osts ons on legal or market availability of specific technologies; and modification of the purchase price and efficiencies of specific technologies. Similarly, the reviewed modelling exercises with al and economic parameters, such as energy intensity levels or efficiency ratios, O&M costs, emission factors, energy prices, capital costs, discount rates, and technol es for as key technical variable to model ns ( Vreuls et al., 2005). Taxes and subsidies dominate the area of economic policy instruments being modelled. ...
Conference Paper
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Energy efficiency ex-ante policy evaluation is commonly, but not exclusively, concerned with the simulation and modelling of policy instruments and resulting technological change. Using the residential sector as case study, the paper provides a meta-analysis of models and modelling exercises and scrutinise their relevance for the field of energy efficiency policy evaluation. The methodology of study is based on: identification of modelling methodologies, selection of case studies, and cross-case analysis. We identify four types of ex-ante methodological modelling categories: simulation, optimisation, accounting and hybrid models. The analysis shows that modelling exercises have impact evaluation as their main research goal. Market and behavioural imperfections are often not explicitly captured and sometimes the use of implicit discount rates is identified to address this critical issue. Regarding modelled policy instruments, the majority of the cases focus on regulatory aspects (e.g. minimum performance standards, building codes). For the rest, evaluations focus on economically-driven policy instruments which are represented through technical factors and costs of measures. Informative policy instruments were identified as being much less modelled. Regarding modelling outcomes, studies are very context-specific so no generalisations can be made. The findings confirm some of the criticism and flaws related to bottom-up energy-economy modelling tools. At the same time, the study stresses that, albeit imperfectly, well-formulated energy modelling tools provide valuable frameworks for organising complex and extensive end-use data. Findings strongly suggest that there is no single-best method to evaluate (residential) energy efficiency policy instruments. Potential research areas to further advance energy-economy models are identified.
... The way in which we study energy DSM also has implications for what is perceived of as successful (Table 1, row 7). A conventional, economic approach evaluates policy interventions from a costebenefit perspective [36]: programmes should be effective in reducing demand for energy and they should be cost-effective (provide a reasonable return in terms of energy saved compared to the cost of the programme). Less often addressed in the economics literature is the 'political' nature of energy DSM programmes [20,37]: What sort of dynamics do such programmes have, and do they change the nature and patterns of energy demand permanently? ...
Article
Exchange of experience between researchers and practitioners is important for arriving at new knowledge that is translatable into practice and at the same time endures in science. This notion has been central in CHANGING BEHAVIOUR, a project aimed at a better understanding of why energy demand-side management (DSM) programmes succeed or fail. Generally, there is a growing tradition of evaluation that encompasses the co-construction of programmes, technology and context. Nevertheless, most current research and evaluation in this particular area focuses solely on the influence of programme characteristics while overlooking contextual factors and transdisciplinary integration. This paper presents the outcomes of theoretical and empirical work involving new insights regarding the crucial conditions for successful energy DSM programmes. In addition, we demonstrate the usefulness of an Action Research methodology that aims to explicitly promote social change though transdisciplinary collaboration between researchers and practitioners. We conclude that a conceptualisation of energy behavioural change as nested within and interacting with broader social processes differs from existing models that place individual change processes at the centre of attention. The toolbox we developed for and with practitioners (involved in designing and implementing energy demand-side programmes) differs accordingly, among others in that it is context-sensitive.
... By comparing company-level savings in the Irish Large Industrial Energy Network (LIEN) to total industry savings (calculated using a top-down method), it could be estimated that 38 % of total savings could be attributed to participation in the program (Cahill 2012a). An analysis of seven VAs by Vreuls et al. (2005) found that around 50 % of efficiency improvement could be credited to the program. Rietbergen et al. (2002) used two methods to isolate the impact of LTA1, the first Dutch agreements on energy efficiency. ...
Article
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In 2008, the Dutch voluntary agreements on industrial energy efficiency faced fundamental changes to their monitoring methodology. Where the old method was based on measuring the improvement of energy use per unit of production, the new method focuses on the energy savings from projects implemented by participating companies. Advocates of the new method claim that it gives a better view of the companies’ efforts to save energy, as it shows their deliberate changes in production processes, whereas opponents emphasise that the relation with ‘real’ energy efficiency is lost. By applying the two methods on the same group of companies, the results can be compared and show to what extent the choice of monitoring method affects the key message to policy makers. Of special interest is the relation between energy and production in the period 2008–2012, a period with large fluctuations in the level of production and energy use as a result of the economic crisis. The data show that energy-saving projects made a significant impact on energy use in the analysis period, although their effect is smaller than that of other factors such as fluctuations in production and in the number of participating companies. The old method shows a result for the period 2005–2013 that is less than half of that of the new method, mainly because of a decrease in efficiency during years of decreasing production. The analysis clearly shows that the two methods do not show the same development of energy efficiency improvement and should be presented as such.
... In terms of timing of instruments, WhC should probably follow the implementation of VAs, in order to trigger energy efficiency activity. The institutional setup of our combined scheme could have a higher degree of complexity due to the various administrative bodies that are required for the proper design, information diffusion, negotiation and implementation of the scheme (Vreuls, 2005). Monitoring is particularly essential when addressing VAs since two typical policy questions arise: whether they 'achieve an appropriate level of environmental performance and whether their environmental performance is achieved with the least cost compared to other possible policy instruments (Ekins and Etheridge, 2006). ...
Article
In this paper we examine the implementation of a combined policy scheme that consists of a traditional instrument, the voluntary agreements (VAs), and an innovative one, the white certificates (WhC). The basic structure of this scheme is that energy suppliers who undertake an energy efficiency obligation under a white certificate scheme can make use of voluntary actions to enhance investments in innovative energy savings projects. Energy suppliers and other market parties can additionally or in parallel participate in voluntary agreements and set energy efficiency targets. For fulfilling their voluntary agreement target, these market parties can receive tax exemptions or receive white certificates that they can sell in the market. Transaction costs and baseline definition for demonstrating energy efficiency improvement deserve special attention. This policy can assist a country to enhance energy efficiency improvement while it stimulates innovation. Cost effectiveness can be higher than the case of stand-alone policy instruments, since more financing options are available for more expensive projects. Nevertheless, the added value of the scheme lies more in the implementation of innovative measures for enhanced energy efficiency. Furthermore, market parties can discover more business opportunities in energy efficiency and establish a green image; hence an integrated scheme should achieve higher political acceptability.
... Second, most of the reviewed case studies have policy impact evaluation as their research goal, e.g., (45)(46)(47)(48)(49). Note that policy impact evaluation is different from policy outcome evaluation (50)(51)(52). Whereas an outcome is understood as the response to the policy instrument by subject participants (e.g., adoption or learning processes related to new technologies), an impact is understood to be the resulting changes generated by outcomes on society and the environment (e.g., emission reductions, energy savings, or improved energy consumption patterns). ...
Article
The growing complexities of energy systems, environmental problems, and technology markets are driving and testing most energy-economy models to their limits. To further advance bottom-up models from a multidisciplinary energy efficiency policy evaluation perspective, we review and critically analyze bottom-up energy-economy models and corresponding evaluation studies on energy efficiency policies to induce technological change. We use the household sector as a case study. Our analysis focuses on decision frameworks for technology choice, type of evaluation being carried out, treatment of market and behavioral failures, evaluated policy instruments, and key determinants used to mimic policy instruments. Although the review confirms criticism related to energy-economy models (e.g., unrealistic representation of decision making by consumers when choosing technologies), they provide valuable guidance for policy evaluation related to energy efficiency. Different areas to further advance models remain open, particularly related to modeling issues, techno-economic and environmental aspects, behavioral determinants, and policy considerations. Full text at: http://www.annualreviews.org/eprint/VhHC6YaSGmnVJA87ipba/full/10.1146/annurev-environ-052810-164840
... Beside the EMEEES project, additional literature exists providing guidance for the calculation of energy savings. Among others, highly elaborated documents are the Model Energy Efficiency Program Impact Evaluation Guide (Dietsch, 2007), the International Performance Measurement and Verification Protocol, IPMVP (Kromer, 2007) and the Evaluation Guidebook Volume I (Vreuls, 2005a) and Volume II (Vreuls, 2005b). Input from these project reports are used to develop the harmonized bottom-up model, in order to meet the requirements for measure evaluations in the light of the ESD. ...
Article
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With the ongoing efforts on the European level to promote energy efficiency, the need for the development of harmonised evaluation criteria for energy efficiency measures arises. Such criteria will allow extensive comparisons of the success or failure of the implementation of energy efficiency measures throughout Europe and will support the development of a first–best strategy for the realisation of energy savings targets in Europe. Two fundamental evaluation possibilities exist: bottom-up andtop-down quantifications of energy savings. Bottom-up calculations give a more detailed view of the impact of energy efficiency measures but are much more costly and time consuming than top-down calculations. In our opinion, this effort can be reduced without losing precision in the savings calculations by the homogenisation of these energy efficiency measures. In this paper, we develop a framework specifying how such a homogenisation could look. KeywordsEnergy efficiency measure-Strategic measure homogenisation-Quantification of energy savings
... Policies operating outside the field of sustainable consumption and production as well as a number of economic, technological, and socio-demographic developments-both long-term trends and short-term eventswill exert an influence too. For instance, many energy efficiency improvements occur through "autonomous" technological change rather than policy intervention (Vreuls 2004). Finally, establishing causality is all the harder as in (environmental) sustainability research chains of causation tend to be long, complex, nonlinear, and highly dependent on local situations. ...
Article
Putting sustainable consumption into practice is a challenge that requires the effort and coordination of numerous societal domains and actors. The paper deals with the contribution of policy making and policy evaluation. More specifically, it addresses the question of how to evaluate the effectiveness of policy instruments dedicated to rendering household consumption more sustainable. Despite the extensive literature on instrument effectiveness, sustainability assessment, and consumer behaviour, only a few accounts deal with the specific characteristics and impacts of policy instruments for sustainable consumption. Against this backdrop, a framework is suggested for the ex post analysis of effects resulting from such policy instruments. Instrument effects include changes in consumption patterns (“outcomes”), subsequent changes in the state of the environment, society and/or economy (“impacts”), and side effects. Step-by-step guidance is provided through the evaluation process. The approach helps to assess the extent to which sustainable consumption policy instruments have achieved their stated goals, but also encourages a critical reflection of these goals. In addition to evaluating instrument effects, the framework serves to explain these effects. It does so on the basis of theoretically grounded hypotheses that tackle drivers of and barriers to instrument effectiveness, thus exploring this relatively new policy field. Methodologically, a combination of qualitative methods (narrative reconstruction) and quantitative methods (e.g., material flow analysis) is recommended to causally link policies to changes in consumption patterns and impacts on sustainability. KeywordsSustainable consumption–Policy instruments–Policy evaluation–Impact assessment–Effectiveness
... 6 In the literature, an outcome is understood as participants' response to policy instruments (e.g., adoption of new technologies, development of new business plans). An impact is understood to be the societal and environmental changes generated by an outcome (e.g., energy consumption, health problems) (see e.g., Fischer, 1995;Hild en et al., 2002;Vreuls et al., 2005). 7 The developers provided design and consulting services to five utilities that introduced OBF programs based on the PAYS V R system (Lachman, 2013). ...
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On‐bill financing (OBF) schemes have been welcomed as innovative mechanisms for encouraging the adoption of low‐carbon energy technologies. Yet while the potential effects of these schemes have received growing attention, less is known about their actual performance. Departing from New Institutional Economics and insights from Behavioral Economics, this theory‐driven assessment examines the How$mart® program in Kansas (United States) and the Green Deal in the United Kingdom. The study identifies the mechanisms designed to trigger behavioral change and technology adoption. We focus on market agents, and related market failures and behavioral anomalies that often prevent energy efficiency improvements. The paper adds to our theoretical and empirical understanding of public and utility‐driven OBF programs applied to the residential sector. Our findings suggest that simple, carefully designed on‐bill programs, where the financing of efficient technologies takes the form of a service rather than a loan, are more effective for the diffusion of low‐carbon energy technology and the reduction of transaction costs. At the same time, on bill‐financing schemes challenge the core business of utilities, and given the complexities and dynamics of energy efficiency markets and energy use, other policy interventions are needed.
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Refrigerators and freezers (subsumed under the term 'cold appliances') are among the most widely used electrical appliances in the residential sector all around the world. Currently, about 1.4 billion domestic cold appliances worldwide use about 650 TWh electricity, which is 1.2 times Germany's total electricity consumption, and cause CO 2 emissions of 450 million tons of CO 2 eq. Although the specific electricity consumption per volume of cold appliances has decreased during recent years due to technical progress and policy instruments like labelling and eco-design requirements, total worldwide energy consumption of these appliances is on the increase. Scenario calculations were carried out for 10 world regions by the Wuppertal Institute. Results show that about half of the energy consumption could be saved with the most energy-efficient appliances available today, and even higher savings will be possible with next generation technologies by 2030. According to the analysis, these savings are usually very cost-effective. All these aspects are part of the new website " bigEE.net – Your guide to energy efficiency in buildings " which aims to provide information about technical options but also about policies to support the development of energy-efficient appliances. To initiate and foster market transformation of energy-efficient appliances it is highly advisable for policymakers to generate appliances-specific policy packages. Since each regional market has its specificity (e.g. energy prices, typical appliance affecting the cost effectiveness of efficient appliances), the barriers for the market transformation of single product groups are also specific and need to be addressed by appropriate policies and measures. Elements of measures to build appropriate specific policy packages for refrigerators will be presented in the paper, and the refrigerator package from California (USA) demonstrates the successful implementation of a sector-specific package.
Article
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The EU and its member states are developing their ow policies targeting at energy supply, energy demand an environmental goals that are indirectly linked to ener use. As these policies are implemented in an alread policy crowded environment, interactions of these i struments take place, which can be complements competitive or self exclusive. As a starting point, we tes White Certificates for energy efficiency improvement i the end-use sectors. Our main research questions are: i) to provide a genereral explanatory framework for analyzing energy and climat policy interactions by employing suitable methods, an ii) to evaluate these methods and draw conclusions fo policy makers when introducing White Certificates wit other policy instruments stressing the critical condition that affect their performance. A core lesson is that when evaluating ex-ante instru ments, a variety of economic and technological method must be applied. Based on these methods, several endo enous and exogenous conditions affect the performanc of White Certificates schemes with other policy instru ments. Due to the innovative character of White Ce tificates and the uncertainty of hidden costs embedde into it, ex-ante evaluations should focus not only on th effectiveness and efficiency of the scheme, but on sever. other criteria which express the political acceptabilit and socioeconomic effects. We argue finally that Whit Certificates can make effective use of market forces an can assist in overcoming market barriers towards ener efficiency, and we expect that under certain precondi Lions, it can be integrated with other policy instrument and allows to achieve cost effectively multiple enviro mental objectives.
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