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Methods in open policy analysis: An application to California's building energy codes

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  • Matthew J. Holian

Abstract

Have building energy codes lowered energy consumption, and have their benefits outweighed costs? Using 2000 Census data, I estimate household energy expenditures by decade of home construction, controlling for household and home characteristics. I find homes built in the 1980s used $35 less in electricity and $46 less in natural gas, per year, compared to 1970s era homes. For Sacramento, energy codes pass a cost‐benefit test when low‐end policy costs are used, but fail with base‐case costs. This study also clarifies how a cost‐benefit analysis (CBA) for a representative household fits into a comprehensive CBA.

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  • Matthew J. Holian, 2023. "Methods in open policy analysis: An application to California's building energy codes," Contemporary Economic Policy, Western Economic Association International, vol. 41(4), pages 613-628, October.
    • Handle: RePEc:bla:coecpo:v:41:y:2023:i:4:p:613-628
    DOI: 10.1111/coep.12610
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    References listed on IDEAS

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    3. Arik Levinson, 2016. "How Much Energy Do Building Energy Codes Save? Evidence from California Houses," American Economic Review, American Economic Association, vol. 106(10), pages 2867-2894, October.
    4. Matthew J. Kotchen, 2017. "Longer-Run Evidence on Whether Building Energy Codes Reduce Residential Energy Consumption," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 135-153.
    5. Grant D. Jacobsen & Matthew J. Kotchen, 2013. "Are Building Codes Effective at Saving Energy? Evidence from Residential Billing Data in Florida," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 34-49, March.
    6. Kevin Novan & Aaron Smith & Tianxia Zhou, 2022. "Residential Building Codes Do Save Energy: Evidence from Hourly Smart-Meter Data," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 483-500, May.
    7. Chris Bruegge & Tatyana Deryugina & Erica Myers, 2019. "The Distributional Effects of Building Energy Codes," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 95-127.
    8. Holian, Matthew J., 2020. "The impact of building energy codes on household electricity expenditures," Economics Letters, Elsevier, vol. 186(C).
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