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Comment on Climate and Energy Policies: Two Sides of the Same Coin (?) by Mark M

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Anthros says at 2:19 pm- “One other question I have is about efficiency. I agree that it seems obvious that it is a sensible thing to aim for. How could it not be? But I wonder. Is there any convincing evidence that genuine increases in efficiency have actually had the effects we assume that they, indeed, will have?”

A recent paper discusses this topic-
“Is There an Energy Efficiency Gap?”
Hunt Allcott and Michael Greenstone

From the abstract-
…..”We therefore review the empirical work on the magnitude of profitable unexploited energy efficiency investments, a literature which frequently does not meet modern standards for credibly estimating the net present value of energy cost savings and often leaves other benefits and costs unmeasured. These problems notwithstanding, recent empirical work in a variety of contexts implies that on average the magnitude of profitable unexploited investment opportunities is much smaller than engineering-accounting studies suggest. Finally, there is tremendous opportunity and need for policy-relevant research that utilizes randomized controlled trials and quasi-experimental techniques to estimate the returns to energy efficiency investments and the welfare effects of energy efficiency programs…”
Download this paper in Adobe Acrobat format: http://ei.haas.berkeley.edu/pdf/working_papers/WP228.pdf

There is some data from City of Palo Alto on the costs of EE increasing over the years as noted here- http://www.energy.ca.gov/2011_energypolicy/documents/2011-08-11_workshop/comments/City_of_Palo_Alto_Utilities_Comments_TN-61893.pdf with some specifics referenced as follows:

“At the August 11 workshop, NRDC repeatedly quoted the cost of EE at 2¢/kWh. This is a misleading number. Based on the SB 1037 reports submitted by CPAU in the past three years, the levelized cost of EE, as expressed by the total utility cost divided by present value of net lifecycle EE savings, has increased steadily, from 2.9¢/kWh in 2008
to 6.4¢/kWh in 2010. Looking forward, as new lighting standards take effect and other low-cost efficiency measures reach saturation, the cost of EE will continue to increase.”

An article by Cynthia Mitchcell, et al entitled “Stabilizing CA Demand- The real reasons behind the state’s energy savings” http://www.fortnightly.com/exclusive.cfm?o_id=159 is an enlightening review of the factors that influenced the stable kw/capita usage in CA over the years. The costs of electrical energy is noted as being one of the biggest drivers…….


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