Advances in Evaluating Energy Efficiency Policies and Programs

Posted: 29 Oct 2018

See all articles by Kenneth Gillingham

Kenneth Gillingham

Yale University

Amelia Keyes

Resources for the Future

Karen L. Palmer

Resources for the Future

Date Written: October 2018

Abstract

This paper reviews the recent evidence on the effectiveness and cost-effectiveness of energy efficiency interventions. After a brief review of explanations for the energy efficiency gap, we explore key issues in energy efficiency evaluation, including the use of randomized controlled trials and incentives faced by those performing evaluations. We provide a summary table of energy savings results by type of efficiency intervention. We also develop an updated aggregate estimate of 2.8 cents per kilowatt hour (kWh) of net savings from utility energy efficiency programs but note that this estimate is based on aggregate utility-reported energy savings. Our review of the economics literature suggests that energy savings are often smaller than implied by utility-reported results, but some interventions appear to be cost-effective relative to the marginal cost of electricity supply.

Suggested Citation

Gillingham, Kenneth and Keyes, Amelia and Palmer, Karen, Advances in Evaluating Energy Efficiency Policies and Programs (October 2018). Annual Review of Resource Economics, Vol. 10, Issue 1, pp. 511-532, 2018. Available at SSRN: https://ssrn.com/abstract=3274146 or http://dx.doi.org/10.1146/annurev-resource-100517-023028

Kenneth Gillingham

Yale University ( email )

New Haven, CT 06511
United States
203-436-5465 (Phone)

HOME PAGE: http://www.yale.edu/gillingham

Amelia Keyes (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Karen Palmer

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

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