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Demand-Side Management and Energy Efficiency in the United States

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  • David S. Loughran
  • Jonathan Kulick

Abstract

Between 1989 and 1999, U.S. electric utilities spent $14.7 billion on demand-side management (DSM) programs aimed at encouraging their customers to make investments in energy efficiency. This study relies on panel data on 324 utilities spanning 11 years to estimate the effect of DSM expenditures on retail electricity sales. Our estimates imply that DSM had a much smaller effect on retail electricity sales than do estimates reported by utilities themselves over the same study period.

Suggested Citation

  • David S. Loughran & Jonathan Kulick, 2004. "Demand-Side Management and Energy Efficiency in the United States," The Energy Journal, , vol. 25(1), pages 19-43, January.
    • Handle: RePEc:sae:enejou:v:25:y:2004:i:1:p:19-43
    DOI: 10.5547/ISSN0195-6574-EJ-Vol25-No1-2
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    References listed on IDEAS

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    1. Paul L. Joskow & Donald B. Marron, 1992. "What Does a Negawatt Really Cost? Evidence from Utility Conservation Programs," The Energy Journal, , vol. 13(4), pages 41-74, October.
    2. Joseph Eto & Edward Vine & Leslie Shown & Richard Sonnenblick & Chris Payne, 1996. "The Total Cost and Measured Performance of Utility-Sponsored Energy Efficiency Programs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 31-51.
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