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Putting a Floor on Energy Savings: Comparing State Energy Efficiency Resource Standards

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  • Palmer, Karen

    ()
    (Resources for the Future)

  • Grausz, Samuel

    ()
    (Resources for the Future)

  • Beasley, Blair

    ()
    (Resources for the Future)

  • Brennan, Tim

    ()
    (Resources for the Future)

Abstract

Energy efficiency resource standards (EERS) refer to policies that require utilities and other covered entities to achieve quantitative goals for reducing energy use by a certain year. EERS policies generally apply to electricity and natural gas sales and electricity peak demand, though they also cover other energy sources in Europe. Our study aggregates information about the requirements of existing EERS policies for electricity sales in the United States. We convert quantitative goals into comparable terms to compare the nominal stringency of EERS programs across states. EERS programs also differ in their nonquantitative requirements, including flexibility measures, measurement and verification programs, and penalties and positive incentives. We compare the U.S. policies to similar policies in the European Union and discuss important policy issues, including exogenous changes in fuel prices and issues with utility management of energy efficiency programs.

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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-12-11.

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Date of creation: 27 Feb 2012
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Handle: RePEc:rff:dpaper:dp-12-11

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Keywords: energy efficiency; electricity; energy efficiency resource standards; state regulation;

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  1. Brennan, Timothy J & Palmer, Karen, 1994. "Comparing the Costs and Benefits of Diversification by Regulated Firms," Journal of Regulatory Economics, Springer, vol. 6(2), pages 115-36, May.
  2. Arimura, Toshi H. & Li, Shanjun & Newell, Richard G. & Palmer, Karen, 2011. "Cost-Effectiveness of Electricity Energy Efficiency Programs," Discussion Papers dp-09-48-rev, Resources For the Future.
  3. Brennan, Timothy J., 2011. "Energy Efficiency Policy: Surveying the Puzzles," Discussion Papers dp-11-27, Resources For the Future.
  4. repec:hal:wpaper:hal-00866422 is not listed on IDEAS
  5. Brennan, Timothy J., 2010. "Optimal energy efficiency policies and regulatory demand-side management tests: How well do they match?," Energy Policy, Elsevier, vol. 38(8), pages 3874-3885, August.
  6. repec:hal:wpaper:hal-00866420 is not listed on IDEAS
  7. repec:hal:ciredw:hal-00866420 is not listed on IDEAS
  8. Brennan, Timothy J. & Palmer, Karen L., 2013. "Energy efficiency resource standards: Economics and policy," Utilities Policy, Elsevier, vol. 25(C), pages 58-68.
  9. Timothy Brennan, 2010. "Decoupling in electric utilities," Journal of Regulatory Economics, Springer, vol. 38(1), pages 49-69, August.
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