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Improving Energy Codes

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  • Grant D. Jacobsen

Abstract

Energy codes set efficiency standards for buildings in the majority of U.S. states. Under most energy codes, builders can comply by demonstrating that the projected private expenditures on energy bills for a proposed building are less than a certain threshold. Using theory and evidence, I show that energy codes would be improved if compliance was instead determined by the projected social damages. Relative to current practice, damage-based codes would likely provide stronger incentives for electricity than natural gas conservation, in most states. Implementation of damage-based codes would lead to substantial welfare gains.

Suggested Citation

  • Grant D. Jacobsen, 2016. "Improving Energy Codes," The Energy Journal, , vol. 37(2), pages 93-108, April.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:2:p:93-108
    DOI: 10.5547/01956574.37.2.gjac
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    Cited by:

    1. Yi Lu & Gayani Karunasena & Chunlu Liu, 2022. "A Systematic Literature Review of Non-Compliance with Low-Carbon Building Regulations," Energies, MDPI, vol. 15(24), pages 1-20, December.
    2. Jacobsen, Grant D., 2015. "Do energy prices influence investment in energy efficiency? Evidence from energy star appliances," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 94-106.

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    More about this item

    Keywords

    Energy efficiency; Energy codes; Differentiated policy; Environmental policy; Building codes; Climate change; Carbon emissions;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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