EconPapers    
Economics at your fingertips  
 

Cost-Effectiveness of Electricity Energy Efficiency Programs

Toshi H. Arimura, Shanjun Li, Richard G. Newell, and Karen Palmer
Authors registered in the RePEc Author Service: Karen Palmer, Arimura, Toshihide (), Richard Newell () and Shanjun Li ()

The Energy Journal, 2012, vol. Volume 33, issue Number 2

Abstract: We analyze the cost-effectiveness of electric utility ratepayer–funded programs to promote demand-side management (DSM) and energy efficiency (EE) investments. We specify a model that relates electricity demand to previous EE DSM spending, energy prices, income, weather, and other demand factors. In contrast to previous studies, we allow EE DSM spending to have a potential long-term demand effect and explicitly address possible endogeneity in spending. We find that current period EE DSM expenditures reduce electricity demand and that this effect persists for a number of years. Our findings suggest that ratepayer funded DSM expenditures between 1992 and 2006 produced a central estimate of 0.9 percent savings in electricity consumption over that time period and a 1.8 percent savings over all years. These energy savings came at an expected average cost to utilities of roughly 5 cents per kWh saved when future savings are discounted at a 5 percent rate.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39) Track citations by RSS feed

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2477 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Working Paper: Cost-Effectiveness of Electricity Energy Efficiency Programs (2011) Downloads
Working Paper: Cost-Effectiveness of Electricity Energy Efficiency Programs (2011) Downloads
Working Paper: Cost-Effectiveness of Electricity Energy Efficiency Programs (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:33-2-04

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().

 
Page updated 2020-09-15
Handle: RePEc:aen:journl:33-2-04