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Demand-Side Management and Energy Efficiency Revisited

Maximilian Auffhammer, Carl Blumstein and Meredith Fowlie

Year: 2008
Volume: Volume 29
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No3-5
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Abstract:
The key finding of Loughran and Kulick (2004) is that utilities have been overstating electricity savings and underestimating costs associated with energy efficiency demand-side management (DSM) programs. This claim is based on point estimates of average DSM-related savings and costs implied by an econometric model of residential electricity demand. We first argue that the chosen test statistics bias results in favor of rejecting the null hypothesis that utility-reported savings reflect true values. We also note that utility estimates of average program savings and costs are rejected based on point estimates alone. We use the same data and econometric model to estimate the appropriate test statistics. We then construct nonparametric bootstrap confidence intervals. These intervals are quite large; we fail to reject the average electricity savings and DSM costs reported by utilities. Our results suggest that the evidence for rejecting utility estimates of DSM savings and costs should be re-interpreted.



The Impact of State Level Building Codes on Residential Electricity Consumption

Anin Aroonruengsawat, Maximilian Auffhammer, and Alan H. Sanstad

Year: 2012
Volume: Volume 33
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol33-No1-2
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Abstract:
This paper studies the impacts of state level residential building codes on per capita residential electricity consumption. We construct a timeline of when individual states first implemented residential building codes. Using panel data for 48 US states from 1970-2006, we exploit the temporal and spatial variation of building code implementation and issuance of building permits to identify the effect of the regulation on residential electricity consumption. Controlling for the effect of prices, income, and weather, we show that states that adopted building codes followed by a significant amount of new construction have experienced detectable decreases in per capita residential electricity consumption--ranging from 0.3-5% in the year 2006. Estimates are larger in states where codes are more stringent and more strictly enforced.

Keywords: Residential Electricity Consumption, Building Codes, Regulation





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