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Electricity Intensity in the Commercial Sector: Market and Public Program Effects

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  • Marvin J. Horowitz
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    Abstract

    Publicly-funded energy efficiency programs have grown in number, size, and scope in the past two decades. The focus of many of these programs is the commercial buildings sector, which purchases approximately one-third of all the electricity produced in the United States. Using a fixed effects panel model, this study analyzes commercial sector electricity intensity across 42 states from 1989 to 2001; in aggregate, these states account for between 90 and 95 percent of U.S. commercial sector electricity sales. The analysis separates market effects from public program effects, finding that electric utility demand side management programs were responsible for reducing commercial sector electricity intensity in 2001 by 1.9 percent relative to the 1989 level. Further, rapidly expanding market transformation programs were responsible for reducing electricity intensity in this sector by 5.8 percent relative to the 1989 level. The findings suggest that in 2001 the combined effects of these public programs reduced commercial sector retail electricity sales by 77.1 million MWh, representing about 2.3 percent of total U.S. retail electricity sales.

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    Bibliographic Info

    Article provided by International Association for Energy Economics in its journal The Energy Journal.

    Volume (Year): Volume 25 (2004)
    Issue (Month): Number 2 ()
    Pages: 115-138

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    Handle: RePEc:aen:journl:2004v25-02-a06

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    Cited by:
    1. Contreras, Sergio & Smith, Wm. Doyle & Fullerton, Thomas M., Jr., 2010. "U.S. commercial electricity consumption," MPRA Paper 34855, University Library of Munich, Germany, revised 22 May 2011.
    2. Toshi H. Arimura & Shanjun Li & Richard G. Newell & Karen Palmer, 2011. "Cost-Effectiveness of Electricity Energy Efficiency Programs," NBER Working Papers 17556, National Bureau of Economic Research, Inc.
    3. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2007. "Evaluating the Effectiveness of EPA Voluntary Programs: An Examination of the Strategic Goals Program for Metal Finishers," NCEE Working Paper Series 200706, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2007.
    4. Paul, Anthony & Myers, Erica & Palmer, Karen, 2009. "A Partial Adjustment Model of U.S. Electricity Demand by Region, Season, and Sector," Discussion Papers dp-08-50, Resources For the Future.
    5. Anne Pisarski & Peta Ashworth, 2013. "The Citizen’s Round Table process: canvassing public opinion on energy technologies to mitigate climate change," Climatic Change, Springer, vol. 119(2), pages 533-546, July.
    6. Kahn, Matthew E. & Kok, Nils & Quigley, John M., 2014. "Carbon emissions from the commercial building sector: The role of climate, quality, and incentives," Journal of Public Economics, Elsevier, vol. 113(C), pages 1-12.
    7. Wilson, Elizabeth J. & Plummer, Joseph & Fischlein, Miriam & Smith, Timothy M., 2008. "Implementing energy efficiency: Challenges and opportunities for rural electric co-operatives and small municipal utilities," Energy Policy, Elsevier, vol. 36(9), pages 3383-3397, September.
    8. Geller, Howard & Harrington, Philip & Rosenfeld, Arthur H. & Tanishima, Satoshi & Unander, Fridtjof, 2006. "Polices for increasing energy efficiency: Thirty years of experience in OECD countries," Energy Policy, Elsevier, vol. 34(5), pages 556-573, March.
    9. Pizer, William A. & Morgenstern, Richard & Shih, Jhih-Shyang, 2011. "The performance of industrial sector voluntary climate programs: Climate Wise and 1605(b)," Energy Policy, Elsevier, vol. 39(12), pages 7907-7916.
    10. Jiusto, Scott, 2008. "An indicator framework for assessing US state carbon emissions reduction efforts (with baseline trends from 1990 to 2001)," Energy Policy, Elsevier, vol. 36(6), pages 2234-2252, June.
    11. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2004. "The Use of Voluntary Approaches for Environmental Policymaking in the U.S," NCEE Working Paper Series 200405, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2004.
    12. Brouhle, Keith & Griffiths, Charles & Wolverton, Ann, 2009. "Evaluating the role of EPA policy levers: An examination of a voluntary program and regulatory threat in the metal-finishing industry," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 166-181, March.

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