IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v123y2018icp289-298.html
   My bibliography  Save this article

Economic and environmental impacts of local utility-delivered industrial energy-efficiency rebate programs

Author

Listed:
  • Choi, Jun-Ki
  • Eom, Jiyong
  • McClory, Emma

Abstract

Manufacturing operations are constantly encouraged to include energy-efficient practices into their plant operations, including through rebate programs that provide monetary rewards for firms who purchase and employ energy-efficient equipment in their facilities. This article presents a novel methodology for analyzing the cascading economic and environmental effects of an electric utility company's industrial energy-efficiency rebate programs and applies it to the case of a local utility located in the U.S. state of Ohio. It examines the utility's industrial rebate programs for lighting, motor, and heating, ventilation, and air conditioning (HVAC) systems and estimates the economic and environmental impacts of the programs using an input-output modeling framework. All three rebate programs provided a modest economic boost not only to directly involved equipment manufacturers and marketing service providers, but also to other upstream industries responding to the direct impact and the final demand augmented by the associated increase in value added in the regional economy. Emissions avoided as a result of electricity savings were found to outweigh additional emissions generated from the production of the energy-efficiency equipment in the region throughout the program years. However, if the full equipment purchase data were made available, the amount of added CO2 emissions would be larger.

Suggested Citation

  • Choi, Jun-Ki & Eom, Jiyong & McClory, Emma, 2018. "Economic and environmental impacts of local utility-delivered industrial energy-efficiency rebate programs," Energy Policy, Elsevier, vol. 123(C), pages 289-298.
    • Handle: RePEc:eee:enepol:v:123:y:2018:i:c:p:289-298
    DOI: 10.1016/j.enpol.2018.08.066
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421518305950
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2018.08.066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Choi, Jun-Ki & Morrison, Drew & Hallinan, Kevin P. & Brecha, Robert J., 2014. "Economic and environmental impacts of community-based residential building energy efficiency investment," Energy, Elsevier, vol. 78(C), pages 877-886.
    2. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
    3. Choi, Jun-Ki & Bakshi, Bhavik R. & Hubacek, Klaus & Nader, Jordan, 2016. "A sequential input–output framework to analyze the economic and environmental implications of energy policies: Gas taxes and fuel subsidies," Applied Energy, Elsevier, vol. 184(C), pages 830-839.
    4. R. Keith Schwer & Dan S. Rickman, 1995. "A comparison of the multipliers of IMPLAN, REMI, and RIMS II: Benchmarking ready-made models for comparison," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 29(4), pages 363-374.
    5. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    6. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    7. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    8. Harris, Jane & Anderson, Jane & Shafron, Walter, 2000. "Investment in energy efficiency: a survey of Australian firms," Energy Policy, Elsevier, vol. 28(12), pages 867-876, October.
    9. Zhang, ZhongXiang & Folmer, Henk, 1998. "Economic modelling approaches to cost estimates for the control of carbon dioxide emissions1," Energy Economics, Elsevier, vol. 20(1), pages 101-120, February.
    10. Laitner, Skip & Bernow, Stephen & DeCicco, John, 1998. "Employment and other macroeconomic benefits of an innovation-led climate strategy for the United States," Energy Policy, Elsevier, vol. 26(5), pages 425-432, April.
    11. Choi, Jun-Ki & Bakshi, Bhavik R. & Haab, Timothy, 2010. "Effects of a carbon price in the U.S. on economic sectors, resource use, and emissions: An input-output approach," Energy Policy, Elsevier, vol. 38(7), pages 3527-3536, July.
    12. Benjamin H. Stevens & George I. Treyz & David J. Ehrlich & James R. Bower, 1983. "A New Technique for the Construction of Non-Survey Regional Input-Output Models," International Regional Science Review, , vol. 8(3), pages 271-286, December.
    13. Thollander, Patrik & Danestig, Maria & Rohdin, Patrik, 2007. "Energy policies for increased industrial energy efficiency: Evaluation of a local energy programme for manufacturing SMEs," Energy Policy, Elsevier, vol. 35(11), pages 5774-5783, November.
    14. Scott, Michael J. & Roop, Joseph M. & Schultz, Robert W. & Anderson, David M. & Cort, Katherine A., 2008. "The impact of DOE building technology energy efficiency programs on U.S. employment, income, and investment," Energy Economics, Elsevier, vol. 30(5), pages 2283-2301, September.
    15. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    16. Lester, T. William, 2013. "Dedicating new real estate transfer taxes for energy efficiency: A revenue option for scaling up Green Retrofit Programs," Energy Policy, Elsevier, vol. 62(C), pages 809-820.
    17. Yushchenko, Alisa & Patel, Martin Kumar, 2016. "Contributing to a green energy economy? A macroeconomic analysis of an energy efficiency program operated by a Swiss utility," Applied Energy, Elsevier, vol. 179(C), pages 1304-1320.
    18. Cagno, E. & Worrell, E. & Trianni, A. & Pugliese, G., 2013. "A novel approach for barriers to industrial energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 290-308.
    19. Paul, Anthony & Palmer, Karen & Ruth, Matthias & Hobbs, Benjamin F. & Irani, Daraius & Michael, Jeffrey & Chen, Yihsu & Ross, Kimberly & Myers, Erica, 2010. "The role of energy efficiency spending in Maryland's implementation of the Regional Greenhouse Gas Initiative," Energy Policy, Elsevier, vol. 38(11), pages 6820-6829, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. He, Yong & Liao, Nuo & Lin, Kunrong, 2021. "Can China's industrial sector achieve energy conservation and emission reduction goals dominated by energy efficiency enhancement? A multi-objective optimization approach," Energy Policy, Elsevier, vol. 149(C).
    2. Kapp, Sean & Choi, Jun-Ki & Hong, Taehoon, 2023. "Predicting industrial building energy consumption with statistical and machine-learning models informed by physical system parameters," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    3. Fábio de Oliveira Neves & Henrique Ewbank & José Arnaldo Frutuoso Roveda & Andrea Trianni & Fernando Pinhabel Marafão & Sandra Regina Monteiro Masalskiene Roveda, 2022. "Economic and Production-Related Implications for Industrial Energy Efficiency: A Logistic Regression Analysis on Cross-Cutting Technologies," Energies, MDPI, vol. 15(4), pages 1-19, February.
    4. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).
    5. Eardley, Scott & Choi, Jun-Ki & Hong, Taehoon & An, Jongbaek, 2024. "Decarbonization potential of regional combined heat and power development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    6. Chunji Zheng & Feng Deng & Chengyou Li, 2022. "Energy-Saving Effect of Regional Development Strategy in Western China," Sustainability, MDPI, vol. 14(9), pages 1-22, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Solnørdal, Mette Talseth & Thyholdt, Sverre Braathen, 2019. "Absorptive capacity and energy efficiency in manufacturing firms – An empirical analysis in Norway," Energy Policy, Elsevier, vol. 132(C), pages 978-990.
    2. Yushchenko, Alisa & Patel, Martin Kumar, 2016. "Contributing to a green energy economy? A macroeconomic analysis of an energy efficiency program operated by a Swiss utility," Applied Energy, Elsevier, vol. 179(C), pages 1304-1320.
    3. Álvarez-Diez, Susana & Baixauli-Soler, J. Samuel & Lozano-Reina, Gabriel & Rodríguez-Linares Rey, Diego, 2024. "Subsidies for investing in energy efficiency measures: Applying a random forest model for unbalanced samples," Applied Energy, Elsevier, vol. 359(C).
    4. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).
    5. Trianni, Andrea & Cagno, Enrico & Farné, Stefano, 2016. "Barriers, drivers and decision-making process for industrial energy efficiency: A broad study among manufacturing small and medium-sized enterprises," Applied Energy, Elsevier, vol. 162(C), pages 1537-1551.
    6. F. Knobloch & J. -F. Mercure, 2016. "The behavioural aspect of green technology investments: a general positive model in the context of heterogeneous agents," Papers 1603.06888, arXiv.org.
    7. Fleiter, Tobias & Schleich, Joachim & Ravivanpong, Ployplearn, 2012. "Adoption of energy-efficiency measures in SMEs—An empirical analysis based on energy audit data from Germany," Energy Policy, Elsevier, vol. 51(C), pages 863-875.
    8. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    9. Nicholas Rivers and Leslie Shiell, 2016. "Free-Riding on Energy Efficiency Subsidies: the Case of Natural Gas Furnaces in Canada," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    10. Tobias Fleitera & Joachim Schleich & Ployplearn Ravivanpong, 2012. "Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data," Post-Print hal-00805748, HAL.
    11. Galarraga, Ibon & Abadie, Luis M. & Ansuategi, Alberto, 2013. "Efficiency, effectiveness and implementation feasibility of energy efficiency rebates: The “Renove” plan in Spain," Energy Economics, Elsevier, vol. 40(S1), pages 98-107.
    12. Suter, Jordan F. & Shammin, Md Rumi, 2013. "Returns to residential energy efficiency and conservation measures: A field experiment," Energy Policy, Elsevier, vol. 59(C), pages 551-561.
    13. Herrera, Bernardo & Amell, Andrés & Chejne, Farid & Cacua, Karen & Manrique, Raiza & Henao, Wilson & Vallejo, Gabriel, 2017. "Use of thermal energy and analysis of barriers to the implementation of thermal efficiency measures in cement production: Exploratory study in Colombia," Energy, Elsevier, vol. 140(P1), pages 1047-1058.
    14. Schmidt, Stephan & Weigt, Hannes, 2013. "A Review on Energy Consumption from a Socio-Economic Perspective: Reduction through Energy Efficiency and Beyond," Working papers 2013/15, Faculty of Business and Economics - University of Basel.
    15. Thollander, Patrik & Backlund, Sandra & Trianni, Andrea & Cagno, Enrico, 2013. "Beyond barriers – A case study on driving forces for improved energy efficiency in the foundry industries in Finland, France, Germany, Italy, Poland, Spain, and Sweden," Applied Energy, Elsevier, vol. 111(C), pages 636-643.
    16. Yael Nidam & Ali Irani & Jamie Bemis & Christoph Reinhart, 2023. "Census-based urban building energy modeling to evaluate the effectiveness of retrofit programs," Environment and Planning B, , vol. 50(9), pages 2394-2406, November.
    17. Antunes, Jorge Junio Moreira & Neves, Juliana Campos & Elmor, Larissa Rosa Carneiro & Araujo, Michel Fontaine Reis De & Wanke, Peter Fernandes & Tan, Yong, 2023. "A new perspective on the U.S. energy efficiency: The political context," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    18. Xie, Yang & Zilberman, David, 2015. "Water Storage Capacities versus Water Use Efficiency: Substitutes or Complements?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205439, Agricultural and Applied Economics Association.
    19. Hochman, Gal & Timilsina, Govinda R., 2017. "Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis," Energy Economics, Elsevier, vol. 63(C), pages 22-30.
    20. Koelbl, Barbara S. & van den Broek, Machteld A. & Wilting, Harry C. & Sanders, Mark W.J.L. & Bulavskaya, Tatyana & Wood, Richard & Faaij, André P.C. & van Vuuren, Detlef P., 2016. "Socio-economic impacts of low-carbon power generation portfolios: Strategies with and without CCS for the Netherlands," Applied Energy, Elsevier, vol. 183(C), pages 257-277.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:123:y:2018:i:c:p:289-298. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.