IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v38y2010i8p3998-4010.html
   My bibliography  Save this article

Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard: Case study of a Kansas "super-utility"

Author

Listed:
  • Cappers, Peter
  • Goldman, Charles

Abstract

Historically, local, state and federal policies have separately promoted the generation of electricity from renewable technologies and the pursuit of energy efficiency to help mitigate the detrimental effects of global climate change and foster energy independence. Federal policymakers are currently considering and several states have enacted a combined efficiency and renewable electricity standard which proponents argue provides a comprehensive approach with greater flexibility and at lower cost. We examine the financial impacts on various stakeholders from alternative compliance strategies with a Combined Efficiency and Renewable Electricity Standard (CERES) using a case study approach for utilities in Kansas. Our results suggest that an investor-owned utility is likely to pursue the most lucrative compliance strategy for its shareholders--one that under-invests in energy efficiency resources. If a business model for energy efficiency inclusive of both a lost fixed cost recovery mechanism and a shareholder incentive mechanism is implemented, our analysis indicates that an investor-owned utility would be more willing to pursue energy efficiency as a lower-cost CERES compliance strategy. Absent implementing such a regulatory mechanism, separate energy efficiency and renewable portfolio standards would improve the likelihood of reducing reliance on fossil fuels at least-cost through the increased pursuit of energy efficiency.

Suggested Citation

  • Cappers, Peter & Goldman, Charles, 2010. "Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard: Case study of a Kansas "super-utility"," Energy Policy, Elsevier, vol. 38(8), pages 3998-4010, August.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:3998-4010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00187-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Hirst, Eric & Goldman, Charles & Hopkins, Mary Ellen, 1991. "Integrated resource planning: Electric and gas utilities in the USA," Utilities Policy, Elsevier, vol. 1(2), pages 172-186, January.
    2. Barbose, Galen & Goldman, Charles & Schlegel, Jeff, 2009. "The Shifting Landscape of Ratepayer-Funded Energy Efficiency in the U.S," The Electricity Journal, Elsevier, vol. 22(8), pages 29-44, October.
    3. Mahone, A. & Woo, C.K. & Williams, J. & Horowitz, I., 2009. "Renewable portfolio standards and cost-effective energy-efficiency investment," Energy Policy, Elsevier, vol. 37(3), pages 774-777, March.
    4. Brown, Marilyn A. & York, Dan & Kushler, Martin, 2007. "Reduced Emissions and Lower Costs: Combining Renewable Energy and Energy Efficiency into a Sustainable Energy Portfolio Standard," The Electricity Journal, Elsevier, vol. 20(4), pages 62-72, May.
    5. Hirst, Eric & Blank, Eric, 1994. "Solutions to regulatory disincentives for utility DSM programmes," Utilities Policy, Elsevier, vol. 4(2), pages 105-112, April.
    6. Sovacool, Benjamin K., 2009. "The importance of comprehensiveness in renewable electricity and energy-efficiency policy," Energy Policy, Elsevier, vol. 37(4), pages 1529-1541, April.
    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. Heeter, Jenny & Bird, Lori, 2013. "Including alternative resources in state renewable portfolio standards: Current design and implementation experience," Energy Policy, Elsevier, vol. 61(C), pages 1388-1399.
    2. Satchwell, Andrew & Cappers, Peter & Goldman, Charles, 2018. "Customer bill impacts of energy efficiency and net-metered photovoltaic system investments," Utilities Policy, Elsevier, vol. 50(C), pages 144-152.
    3. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.

    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. Satchwell, Andrew & Cappers, Peter & Goldman, Charles, 2011. "Carrots and sticks: A comprehensive business model for the successful achievement of energy efficiency resource standards," Utilities Policy, Elsevier, vol. 19(4), pages 218-225.
    2. Yushchenko, Alisa & Patel, Martin Kumar, 2017. "Cost-effectiveness of energy efficiency programs: How to better understand and improve from multiple stakeholder perspectives?," Energy Policy, Elsevier, vol. 108(C), pages 538-550.
    3. Chandler, Jess, 2009. "Trendy solutions: Why do states adopt Sustainable Energy Portfolio Standards?," Energy Policy, Elsevier, vol. 37(8), pages 3274-3281, August.
    4. Eto, Joseph & Stoft, Steven & Belden, Timothy, 1997. "The theory and practice of decoupling utility revenues from sales," Utilities Policy, Elsevier, vol. 6(1), pages 43-55, March.
    5. Woo, C.K. & Zarnikau, J. & Moore, J. & Horowitz, I., 2011. "Wind generation and zonal-market price divergence: Evidence from Texas," Energy Policy, Elsevier, vol. 39(7), pages 3928-3938, July.
    6. Lorenz Kammermann & Karin Ingold, 2019. "Going beyond technocratic and democratic principles: stakeholder acceptance of instruments in Swiss energy policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 52(1), pages 43-65, March.
    7. Atul Kumar Singh, 2024. "Potential Asymmetries in the International trade and Economic Growth in China: The Role of Emission Intensity," Energy Technologies and Environment, Anser Press, vol. 2(2), pages 49-60, June.
    8. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    9. Lim, Xin-Le & Lam, Wei-Haur & Hashim, Roslan, 2015. "Feasibility of marine renewable energy to the Feed-in Tariff system in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 708-719.
    10. Monica Castaneda & Sebastian Zapata & Andres Aristizabal, 2018. "Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia," Energies, MDPI, vol. 11(10), pages 1-17, October.
    11. DeBenedictis, A. & Hoff, T.E. & Price, S. & Woo, C.K., 2010. "Statistically adjusted engineering (SAE) modeling of metered roof-top photovoltaic (PV) output: California evidence," Energy, Elsevier, vol. 35(10), pages 4178-4183.
    12. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    13. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    14. Clara Pardo Martínez, 2011. "Energy efficiency in the automotive industry evidence from Germany and Colombia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(2), pages 367-383, April.
    15. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    16. Bruce Tonn & Paul Frymier & Jared Graves & Jessa Meyers, 2010. "A Sustainable Energy Scenario for the United States: Year 2050," Sustainability, MDPI, vol. 2(12), pages 1-31, November.
    17. Rizzi, Francesco & van Eck, Nees Jan & Frey, Marco, 2014. "The production of scientific knowledge on renewable energies: Worldwide trends, dynamics and challenges and implications for management," Renewable Energy, Elsevier, vol. 62(C), pages 657-671.
    18. Wolfgang Buchholz & Jonas Frank & Hans-Dieter Karl & Johannes Pfeiffer & Karen Pittel & Ursula Triebswetter & Jochen Habermann & Wolfgang Mauch & Thomas Staudacher, 2012. "Die Zukunft der Energiemärkte: Ökonomische Analyse und Bewertung von Potenzialen und Handlungsmöglichkeiten," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 57, September.
    19. Chien Bong, Cassendra Phun & Ho, Wai Shin & Hashim, Haslenda & Lim, Jeng Shiun & Ho, Chin Siong & Peng Tan, William Soo & Lee, Chew Tin, 2017. "Review on the renewable energy and solid waste management policies towards biogas development in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 988-998.
    20. Erik Gawel & Sebastian Strunz & Paul Lehmann, 2016. "Support policies for renewables: Instrument choice and instrument change from a Public Choice perspective," WIDER Working Paper Series wp-2016-6, World Institute for Development Economic Research (UNU-WIDER).

    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:38:y:2010:i:8:p:3998-4010. 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.