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Putting a floor on energy savings: Comparing state energy efficiency resource standards

  • Palmer, Karen L.
  • Grausz, Samuel
  • Beasley, Blair
  • Brennan, Timothy J.

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 Europe and discuss important policy issues, including exogenous changes in fuel prices and issues with utility management of energy efficiency programs.

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Article provided by Elsevier in its journal Utilities Policy.

Volume (Year): 25 (2013)
Issue (Month): C ()
Pages: 43-57

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Handle: RePEc:eee:juipol:v:25:y:2013:i:c:p:43-57
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30478

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  1. Toshi H. Arimura & Shanjun Li & Richard G. Newell & Karen Palmer, 2011. "Cost-Effectiveness of Electricity Energy Efficiency Programs," NBER Working Papers 17556, National Bureau of Economic Research, Inc.
  2. Louis-Gaƫtan Giraudet & Luc Bodineau & Dominique Finon, 2011. "The costs and benefits of white certificates schemes," CIRED Working Papers hal-00866420, HAL.
  3. Timothy J. Brennan, 2009. "Optimal Energy Efficiency Policies and Regulatory Demand-Side Management Tests: How Well Do They Match?," UMBC Economics Department Working Papers 09-109, UMBC Department of Economics, revised 01 Jan 2009.
  4. 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.
  5. repec:hal:wpaper:hal-00866422 is not listed on IDEAS
  6. repec:hal:wpaper:hal-00866420 is not listed on IDEAS
  7. Timothy Brennan, 2010. "Decoupling in electric utilities," Journal of Regulatory Economics, Springer, vol. 38(1), pages 49-69, August.
  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. Brennan, Timothy J., 2011. "Energy Efficiency Policy: Surveying the Puzzles," Discussion Papers dp-11-27, Resources For the Future.
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