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Differential and Distributional Effects of Energy Efficiency Surveys

Evidence from Electricity Consumption

Bibliographic Data

ID13037080
AuthorsThomas J Kniesner (0000-0002-9820-4778, Claremont Graduate University, corresponding author), Galib Rustamov (Claremont Graduate University)
Year2018
Volume9
Issue3
Pages375-406
Publication date2018-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Benefit-Cost Analysis (JOURNAL)
Journal identifiersISSN: 2152-2812 • E-ISSN: 2194-5888
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/bca.2018.17
OpenAlexW3121511173
LanguageEN
Citations received2
References cited60

Our research investigates the effects of residential energy efficiency audit programs on subsequent household electricity consumption. Here there is a one-time interaction between households, which participate voluntarily, and the surveyors. Our research objective is to determine whether and to what extent the surveys lead to behavioral changes. We then examine how persistent the intervention is over time and whether the effects decay or intensify. The main evaluation problem here is survey participants’ self-selection, which we address econometrically via several non-parametric estimators involving kernel-based propensity-score matching. In the first method we use difference-in-differences (DID) estimation. Our second estimator is quantile DID, which produces estimates on distributions. The comparison group consists of households who were not yet participating in the survey but participated later. Our evidence is that the customers who participated in the survey reduced their electricity consumption by about 7%, on average compared to customers who had not yet participated in the survey. Considering the total number of high-usage households participating in the survey in 2009, we estimate that electricity consumption was reduced by an aggregate of 2 million kWh per year, which is approximately equal to the monthly consumption of 3500 typical households in California with an estimated 1527 metric tons less of carbon dioxide emissions. Because the energy audit program is inexpensive ($10–$20 per household) a key issue is that while the program is cost-effective, is it regressive? We find that as the quantiles of the outcome distribution increase, high-use households save proportionally less electricity than do low-use customers. Overall, our results imply that program designers can better target low-use and low-income households, because they are more likely to benefit from the programs through energy savings

Average treatment effect · Consumption (sociology · Difference in differences · Econometrics · Economics · Electricity · Energy consumption · Estimator · Matching (statistics · Propensity score matching · Quantile · Statistics · Survey data collection · Economic and Environmental Valuation · Energy Efficiency and Management · Energy, Environment, and Transportation Policies · Engineering · Mathematics

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Unique citing works2
Citations per year0,33
Citation span2020 - 2023 (4)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 2
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