Improving Energy Codes

The Energy Journal 37(1): 93-108 (2016).

Posted: 25 Mar 2021

See all articles by Grant Jacobsen

Grant Jacobsen

University of Oregon - School of Planning, Public Policy, and Management

Date Written: January 1, 2016

Abstract

Energy codes set efficiency standards for buildings in the majority of U.S. states. Under most energy codes, builders can comply by demonstrating that the projected private expenditures on energy bills for a proposed building are less than a certain threshold. Using theory and evidence, I show that energy codes would be improved if compliance was instead determined by the projected social damages. Relative to current practice, damage-based codes would likely provide stronger incentives for electricity than natural gas conservation, in most states. Implementation of damage-based codes would lead to substantial welfare gains.

Keywords: Energy efficiency; energy codes; differentiated policy; environmental policy; building codes; climate change; carbon

JEL Classification: Q48, Q54, Q58

Suggested Citation

Jacobsen, Grant, Improving Energy Codes (January 1, 2016). The Energy Journal 37(1): 93-108 (2016)., Available at SSRN: https://ssrn.com/abstract=3788603

Grant Jacobsen (Contact Author)

University of Oregon - School of Planning, Public Policy, and Management ( email )

1280 University of Oregon
Eugene, OR 97403
United States

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