Policies that would remove marker barriers across the economy to investments in energy efficiency are described in a new report issued by the American Council for an Energy-Efficient Economy (ACEEE).
The report, Overcoming Market Barriers and Using Market Forces to Advance Energy Efficiency highlights 16 policies that would remove market barriers across the economy to investments in energy efficiency and also provides Congress and state policymakers with a road map to address national energy consumption. Policy changes described in the report could save the country approximately $1 trillion in energy bills and 19 quads in energy consumption.
Although the United States has made much progress in energy efficiency in the last few decades, there remains many cost-effective opportunities available to advance efficiency even further, while improving the economy at the same time. A variety of market failures and market barriers, however, contribute to keeping the country from fully realizing its energy efficiency potential.
“Eliminating barriers that keep us from reducing waste is an approach both sides of the aisle can support,” Steven Nadel, ACEEE executive director, says. “By removing these barriers, Congress and state policymakers have an opportunity to let smart investments help strengthen the economy while saving the nation billions.”
The report discusses several targeted policies that leverage market mechanisms and address specific market failures to energy efficiency, without requiring substantial spending or government mandates. For example, the development of a comprehensive building labeling and benchmarking program could save approximately 1.6 quads of energy and $60 billion between 2014 and 2030. Even more impressive are the benefits gained from adjusting corporate tax legislation to encourage the replacement of inefficient equipment and from removing regulatory barriers to combined heat and power (CHP) projects. These two policies alone could reduce national energy consumption by 7 quads and save the economy close to $300 billion.
“We want to show policymakers that there are a number of cost-effective policies out there that could promote energy efficiency and kick start the economy at the same time. This report highlights a number of inventive approaches that we haven’t made much use of to date,” says lead author Shruti Vaidyanathan, ACEEE senior research analyst.
Included in the report are policy interventions targeted at residential and commercial buildings, the industrial sector, and the transportation sector, as well as a number of policies with economy-wide benefits. For each measure, the report provides a brief description of the policy, its legislative history, general estimates of associated costs and benefits, and recommendations about future policy design.
Policies that would remove marker barriers across the economy to investments in energy efficiency are described in a new report issued by the American Council for an Energy-Efficient Economy (ACEEE).
To read the executive summary, click here