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Electricity Intensity in the Commercial Sector: Market and Public Program Effects

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  • Marvin J. Horowitz

Abstract

Publicly-funded energy efficiency programs have grown in number, size, and scope in the past two decades. The focus of many of these programs is the commercial buildings sector, which purchases approximately one-third of all the electricity produced in the United States. Using a fixed effects panel model, this study analyzes commercial sector electricity intensity across 42 states from 1989 to 2001; in aggregate, these states account for between 90 and 95 percent of U.S. commercial sector electricity sales. The analysis separates market effects from public program effects, finding that electric utility demand side management programs were responsible for reducing commercial sector electricity intensity in 2001 by 1.9 percent relative to the 1989 level. Further, rapidly expanding market transformation programs were responsible for reducing electricity intensity in this sector by 5.8 percent relative to the 1989 level. The findings suggest that in 2001 the combined effects of these public programs reduced commercial sector retail electricity sales by 77.1 million MWh, representing about 2.3 percent of total U.S. retail electricity sales.

Suggested Citation

  • Marvin J. Horowitz, 2004. "Electricity Intensity in the Commercial Sector: Market and Public Program Effects," The Energy Journal, , vol. 25(2), pages 115-137, April.
    • Handle: RePEc:sae:enejou:v:25:y:2004:i:2:p:115-137
    DOI: 10.5547/ISSN0195-6574-EJ-Vol25-No2-6
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    Cited by:

    1. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2007. "Evaluating the Effectiveness of EPA Voluntary Programs: An Examination of the Strategic Goals Program for Metal Finishers," NCEE Working Paper Series 200706, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2007.
    2. Ann Wolverton & Charles Griffiths & William Wheeler, 2016. "Evaluating the Effectiveness of Voluntary Programs: Did Ohio's Tox-Minus Initiative Affect Participants' TRI Emissions?," NCEE Working Paper Series 201605, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2016.
    3. Keith Brouhle & Charles Griffiths & Ann Wolverton, 2004. "The Use of Voluntary Approaches for Environmental Policymaking in the U.S," NCEE Working Paper Series 200405, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2004.

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