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Low-income energy efficiency programs and energy consumption

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  • Hancevic, Pedro I.
  • Sandoval, Hector H.

Abstract

Low-income energy efficiency programs have become a major component of cities’ energy policy, with 49 out of 51 largest metropolitan areas in the U.S. offering one. This paper uses data from Gainesville Regional Utility to quantify the impacts of the housing investment done by its Low-income Energy Efficiency Program Plus (LEEP Plus) on energy consumption. Our results show that LEEP Plus does not affect natural gas consumption but reduces electricity consumption by approximately 7%, with greater savings occurring in the summer and winter. The effect on electricity consumption is significant to a variety of robustness checks and remains for at least 24 months after the completion of energy efficiency upgrades. We also measure some relevant heterogeneous effects, one of which is the breakdown of the air-conditioning-related investments, the main energy efficiency improvement under the LEEP Plus program. Finally, we evaluate the energy savings in monetary terms considering the private cost changes and the social cost changes. In both cases, the associated energy savings are not enough to offset the investment costs.

Suggested Citation

  • Hancevic, Pedro I. & Sandoval, Hector H., 2022. "Low-income energy efficiency programs and energy consumption," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:jeeman:v:113:y:2022:i:c:s0095069622000341
    DOI: 10.1016/j.jeem.2022.102656
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    Cited by:

    1. Chlond, Bettina & Goeschl, Timo & Kesternich, Martin, 2022. "More money or better procedures? Evidence from an energy efficiency assistance program," ZEW Discussion Papers 22-020, ZEW - Leibniz Centre for European Economic Research.
    2. Vincent P. Roberdel & Ioulia V. Ossokina & Vladimir A. Karamychev & Theo A. Arentze, 2023. "Energy-efficient homes: effects on poverty, environment and comfort," Tinbergen Institute Discussion Papers 23-082/V, Tinbergen Institute.
    3. Hadush Meles, Tensay & Farrell, Niall & Curtis, John, 2023. "Are energy performance certificates a strong predictor of actual energy use? Evidence from high-frequency thermostat panel data," Papers WP749, Economic and Social Research Institute (ESRI).
    4. Kažukauskas, Andrius & Li, Xiaoying, 2024. "Realized dynamic effect of retrofits on energy consumption in Soviet-era multi-apartment buildings," Energy Economics, Elsevier, vol. 134(C).
    5. Reanos, Miguel Tovar & Curtis, John & Pillai, Arya & Meier, David, 2023. "Fuel poverty and financial literacy: Evidence from Irish home owners," Papers WP751, Economic and Social Research Institute (ESRI).
    6. Omar Isaac Asensio & Olga Churkina & Becky D. Rafter & Kira E. O’Hare, 2024. "Housing policies and energy efficiency spillovers in low and moderate income communities," Nature Sustainability, Nature, vol. 7(5), pages 590-601, May.
    7. Hancevic, Pedro I. & Sandoval, Hector H., 2023. "Solar panel adoption among Mexican small and medium-sized commercial and service businesses," Energy Economics, Elsevier, vol. 126(C).
    8. Pedro I. Hancevic & Hector H. Sandoval, 2023. "Solar Panel Adoption in SMEs in Emerging Countries," Working Papers 222, Red Nacional de Investigadores en Economía (RedNIE).
    9. Maya Papineau & Nicholas Rivers & Kareman Yassin, 2022. "Estimates of long-run energy savings and realization rates from a large energy efficiency retrofit program," Carleton Economic Papers 22-09, Carleton University, Department of Economics.
    10. Estévez, Andrés & Tovar Reaños , Miguel, 2024. "Empowering homes? Unravelling the connection between energy efficiency and well-being," Papers WP784, Economic and Social Research Institute (ESRI).
    11. Zhang, Yixiang & Song, Bowei, 2023. "Does energy-efficiency label affect appliance price? Empirical analysis of the new national standard air conditioners in China," Energy, Elsevier, vol. 269(C).

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    More about this item

    Keywords

    Energy efficiency; Electricity consumption; Low-income program; Heterogeneous effects; Social marginal costs;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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