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Comparison of energy efficiency incentive programs: Rebates and white certificates

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  • Transue, Morghan
  • Felder, Frank A.
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    Abstract

    With increased interest in energy efficiency in recent years, energy efficiency portfolio standards (EEPS) have gained popularity in state policymaking. This analysis employed New Jersey specific data to compare two incentive based approaches to EEPS implementation: rebates and white certificates. Quantitative modeling suggests that white certificate approaches that depend on market-clearing prices generate much larger upfront incentive outlays than rebate programs. They do not however increase societal burden. Both programs overcome high upfront efficiency measure costs and both recoup the expenses over the long run. Administration costs and participation rates can affect this dynamic however and require additional research to determine which approaches are most cost effective for various energy efficiency measures.

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    Bibliographic Info

    Article provided by Elsevier in its journal Utilities Policy.

    Volume (Year): 18 (2010)
    Issue (Month): 2 (June)
    Pages: 103-111

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    Handle: RePEc:eee:juipol:v:18:y:2010:i:2:p:103-111

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    Web page: http://www.elsevier.com/locate/inca/30478

    Related research

    Keywords: Energy efficiency Rebates White tags;

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    1. Gilbert E. Metcalf, 2006. "Energy Conservation in the United States: Understanding its Role in Climate Policy," NBER Working Papers 12272, National Bureau of Economic Research, Inc.
    2. Gillingham, Kenneth & Newell, Richard G. & Palmer, Karen, 2009. "Energy Efficiency Economics and Policy," Discussion Papers dp-09-13, Resources For the Future.
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    Cited by:
    1. Morini, Mirko & Pinelli, Michele & Spina, Pier Ruggero & Venturini, Mauro, 2013. "Optimal allocation of thermal, electric and cooling loads among generation technologies in household applications," Applied Energy, Elsevier, vol. 112(C), pages 205-214.

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