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Longer-Run Evidence on Whether Building Energy Codes Reduce Residential Energy Consumption

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  • Matthew J. Kotchen

Abstract

This paper provides an ex post evaluation of how changes to a building energy code affect energy consumption. Using residential billing data for electricity and natural gas over 11 years, the analysis is based on comparisons between residences constructed just before and just after a building code change in Florida. While an earlier study using 3 years of data for the same residences showed savings for both electricity and natural gas, new results show an enduring savings for natural gas only. These findings underscore the importance of accounting for all sources of energy consumption when conducting evaluations of building codes. More broadly, the results provide a counterpoint to the growing literature casting doubt on whether ex ante forecasts of energy efficiency policies and investments can provide useful information about actual energy savings. Indeed, more than a decade after Florida's energy code change, the measured energy savings still meets or exceeds the forecasted amount.

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  • Matthew J. Kotchen, 2017. "Longer-Run Evidence on Whether Building Energy Codes Reduce Residential Energy Consumption," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 135-153.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/689703
    DOI: 10.1086/689703
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    Cited by:

    1. Stefano Carattini & Béla Figge & Alexander Gordan & Andreas Löschel, 2022. "Municipal Building Codes and the Adoption of Solar Photovoltaics," CESifo Working Paper Series 10015, CESifo.
    2. Papineau, Maya & Yassin, Kareman & Newsham, Guy & Brice, Sarah, 2021. "Conditional demand analysis as a tool to evaluate energy policy options on the path to grid decarbonization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    3. Lloyd-Smith, Patrick & Adamowicz, Wiktor & Entem, Alicia & Fenichel, Eli P. & Rouhi Rad, Mani, 2021. "The decade after tomorrow: Estimation of discount rates from realistic temporal decisions over long time horizons," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 158-174.
    4. Singhal, Puja & Pahle, Michael & Kalkuhl, Matthias & Levesque, Antoine & Sommer, Stephan & Berneiser, Jessica, 2022. "Beyond good faith: Why evidence-based policy is necessary to decarbonize buildings cost-effectively in Germany," Energy Policy, Elsevier, vol. 169(C).
    5. Lang, Ghislaine & Lanz, Bruno, 2022. "Climate policy without a price signal: Evidence on the implicit carbon price of energy efficiency in buildings," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    6. Ewald, Jens & Sterner, Thomas & Sterner, Erik, 2022. "Understanding the resistance to carbon taxes: Drivers and barriers among the general public and fuel-tax protesters," Resource and Energy Economics, Elsevier, vol. 70(C).
    7. Davis, Lucas W. & Martinez, Sebastian & Taboada, Bibiana, 2020. "How effective is energy-efficient housing? Evidence from a field trial in Mexico," Journal of Development Economics, Elsevier, vol. 143(C).
    8. Lucas W. Davis & Sebastian Martinez & Bibiana Taboada, 2018. "How Effective is Energy-Efficient Housing? Evidence from a Field Experiment in Mexico," NBER Working Papers 24581, National Bureau of Economic Research, Inc.
    9. Wang, Xia & Ding, Chao & Cai, Weiguang & Luo, Lizi & Chen, Mingman, 2021. "Identifying household cooling savings potential in the hot summer and cold winter climate zone in China: A stochastic demand frontier approach," Energy, Elsevier, vol. 237(C).
    10. 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).
    11. Matthew J. Holian, 2023. "Methods in open policy analysis: An application to California's building energy codes," Contemporary Economic Policy, Western Economic Association International, vol. 41(4), pages 613-628, October.
    12. Yulong Xie & Mark Halverson & Rosemarie Bartlett & Yan Chen & Michael Rosenberg & Todd Taylor & Jeremiah Williams & Michael Reiner, 2020. "Evaluating Building Energy Code Compliance and Savings Potential through Large-Scale Simulation with Models Inferred by Field Data," Energies, MDPI, vol. 13(9), pages 1-19, May.
    13. Jens Ewald & Thomas Sterner & Eoin Ó Broin & Érika Mata, 2021. "Saving energy in residential buildings: the role of energy pricing," Climatic Change, Springer, vol. 167(1), pages 1-20, July.
    14. Germeshausen, Robert & von Graevenitz, Kathrine & Achtnicht, Martin, 2022. "Does the stick make the carrot more attractive? State mandates and uptake of renewable heating technologies," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    15. Marcin Relich & Arkadiusz Gola & Małgorzata Jasiulewicz-Kaczmarek, 2022. "Identifying Improvement Opportunities in Product Design for Reducing Energy Consumption," Energies, MDPI, vol. 15(24), pages 1-19, December.
    16. Singhal, Puja & Hobbs, Andrew, 2021. "The Distribution of Energy Efficiency and Regional Inequality," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242343, Verein für Socialpolitik / German Economic Association.

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