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The impact of building energy codes on household electricity expenditures

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  • Holian, Matthew J.

Abstract

Home energy use is a major source of a typical US household’s carbon emissions. This study uses the American Community Survey (ACS) micro data to estimate the impact of building energy codes on household electricity expenditures, using multiple regression and difference-in-difference models. In California and US samples, I present new evidence that energy codes were modestly effective. Homes built in the decade after energy codes were first adopted spend between 1.5% and 4% less on electricity compared to homes built prior to their adoption.

Suggested Citation

  • Holian, Matthew J., 2020. "The impact of building energy codes on household electricity expenditures," Economics Letters, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:ecolet:v:186:y:2020:i:c:s0165176519304264
    DOI: 10.1016/j.econlet.2019.108841
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    References listed on IDEAS

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    1. Dora L. Costa & Matthew E. Kahn, 2011. "Electricity Consumption and Durable Housing: Understanding Cohort Effects," American Economic Review, American Economic Association, vol. 101(3), pages 88-92, May.
    2. Koirala, Bishwa S. & Bohara, Alok K. & Berrens, Robert P., 2014. "Estimating the net implicit price of energy efficient building codes on U.S. households," Energy Policy, Elsevier, vol. 73(C), pages 667-675.
    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. 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.
    5. Anin Aroonruengsawat, Maximilian Auffhammer, and Alan H. Sanstad, 2012. "The Impact of State Level Building Codes on Residential Electricity Consumption," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    6. Makram El-Shagi & Claus Michelsen & Sebastian Rosenschon, 2017. "Empirics on the Long-Run Effects of Building Energy Codes in the Housing Market," Land Economics, University of Wisconsin Press, vol. 93(4), pages 585-607.
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    Cited by:

    1. Liu, Jing & Huang, Fubin & Wang, Zihan & Shuai, Chuanmin, 2021. "What is the anti-poverty effect of solar PV poverty alleviation projects? Evidence from rural China," Energy, Elsevier, vol. 218(C).
    2. 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.
    3. Krystyna Gomółka & Piotr Kasprzak, 2022. "Household Ability of Expenditures on Electricity and Energy Resources in the Countries That Joined the EU after 2004," Energies, MDPI, vol. 15(9), pages 1-21, April.

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    More about this item

    Keywords

    Urban; Environment; Energy; Housing; Regulation;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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