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Realized Savings from Canada's Building Energy Codes

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Abstract

We assess realized energy and air leakage changes in homes constructed before and after new building energy code adoptions in three Canadian provinces: Ontario, New Brunswick, and Alberta. We find no energy or air leakage reductions attributable to more stringent code requirements. There is no evidence that natural gas consumption declined among houses built up to five years before or four years after a code change. Instead, a generalized improvement in residential electricity consumption and air leakage rates is observable at least three to five years before any new code adoptions, depending on the province. These pre-existing trends in electricity consumption and air leakage may point to changes in building industry practice preceding new building code adoptions, though further investigation is required to assess the drivers of these changes. The estimated energy savings are also not in line with ex-ante engineering projections, which predicted natural gas savings of about 10% and little to no electricity savings.

Suggested Citation

  • Ekaterina Alekhanova & Maya Papineau & Kareman Yassin, 2023. "Realized Savings from Canada's Building Energy Codes," Carleton Economic Papers 23-06, Carleton University, Department of Economics.
  • Handle: RePEc:car:carecp:23-06
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    References listed on IDEAS

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    1. Lauren Giandomenico & Maya Papineau & Nicholas Rivers, 2022. "A Systematic Review of Energy Efficiency Home Retrofit Evaluation Studies," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 689-708, October.
    2. Arik Levinson, 2016. "How Much Energy Do Building Energy Codes Save? Evidence from California Houses," American Economic Review, American Economic Association, vol. 106(10), pages 2867-2894, October.
    3. Papineau, Maya, 2017. "Setting the standard? A framework for evaluating the cost-effectiveness of building energy standards," Energy Economics, Elsevier, vol. 64(C), pages 63-76.
    4. Kevin Novan & Aaron Smith & Tianxia Zhou, 2022. "Residential Building Codes Do Save Energy: Evidence from Hourly Smart-Meter Data," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 483-500, May.
    5. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    6. Grant D. Jacobsen & Matthew J. Kotchen, 2013. "Are Building Codes Effective at Saving Energy? Evidence from Residential Billing Data in Florida," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 34-49, March.
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