Cost-Effectiveness of Electricity Energy Efficiency Programs

  title={Cost-Effectiveness of Electricity Energy Efficiency Programs},
  author={Toshi H. Arimura and Shanjun Li and R. G. Newell and Karen Palmer},
We analyze the cost-effectiveness of electric utility ratepayer-funded programs to promote demand-side management (DSM) and energy efficiency (EE) investments. We specify a model that relates electricity demand to previous EE DSM spending, energy prices, income, weather, and other demand factors. In contrast to previous studies, we allow EE DSM spending to have a potential long-term demand effect and explicitly address possible endogeneity in spending. We find that current period EE DSM… CONTINUE READING