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The Impact of State Level Building Codes on Residential Electricity Consumption

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  • Anin Aroonruengsawat
  • Maximilian Auffhammer
  • Alan H. Sanstad

Abstract

This paper studies the impacts of state level residential building codes on per capita residential electricity consumption. We construct a timeline of when individual states first implemented residential building codes. Using panel data for 48 US states from 1970-2006, we exploit the temporal and spatial variation of building code implementation and issuance of building permits to identify the effect of the regulation on residential electricity consumption. Controlling for the effect of prices, income, and weather, we show that states that adopted building codes followed by a significant amount of new construction have experienced detectable decreases in per capita residential electricity consumption—ranging from 0.3-5% in the year 2006. Estimates are larger in states where codes are more stringent and more strictly enforced. doi: 10.5547/ISSN0195-6574-EJ-Vol33-No1-2

Suggested Citation

  • Anin Aroonruengsawat & Maximilian Auffhammer & Alan H. Sanstad, 2011. "The Impact of State Level Building Codes on Residential Electricity Consumption," The Energy Journal, , vol. 33(1), pages 31-52, January.
    • Handle: RePEc:sae:enejou:v:33:y:2011:i:1:p:31-52
    DOI: 10.5547/ISSN0195-6574-EJ-Vol33-No1-2
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    References listed on IDEAS

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    1. Marvin J. Horowitz, 2007. "Changes in Electricity Demand in the United States from the 1970s to 2003," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 93-120.
    2. Dora L. Costa & Matthew E. Kahn, 2010. "Why Has California's Residential Electricity Consumption Been So Flat since the 1980s?: A Microeconometric Approach," NBER Working Papers 15978, National Bureau of Economic Research, Inc.
    3. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    4. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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