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Are Residential Energy Efficiency Upgrades Effective? An Empirical Analysis in Southern California

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  • Yating Chuang
  • Magali A. Delmas
  • Stephanie Pincetl

Abstract

We analyze multiple subsidy programs for residential energy efficiency upgrades from 2010 to 2015 using electricity billing records of more than 11 million households in Southern California. We find that adopting these upgrades reduces overall electricity usage by 4%. However, there are significant differences in savings between upgrades. Pool pump and refrigeration upgrades generate the largest savings (13% and 6%, respectively). Lighting and HVAC retrofits generate the smallest savings (less than 1%). Some upgrades lead to concerns of rebound effects, such as dishwasher and clothes washer upgrades, and building envelope upgrades. Program impact varies by time of the year and building type. Furthermore, we find that energy savings are inconsistent with the engineering estimates. These results indicate that policy makers should consider the allocation of program funding not simply based on engineering projections but also based on measured electricity consumption such as those described in this study.

Suggested Citation

  • Yating Chuang & Magali A. Delmas & Stephanie Pincetl, 2022. "Are Residential Energy Efficiency Upgrades Effective? An Empirical Analysis in Southern California," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 9(4), pages 641-679.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/718529
    DOI: 10.1086/718529
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    Cited by:

    1. Considine, Brian & Liu, Ying & McNabola, Aonghus, 2024. "Energy savings potential and life cycle costs of deep energy retrofits in buildings with and without habitable style loft attic conversions: A case study of Irelands residential sector," Energy Policy, Elsevier, vol. 185(C).
    2. Estévez, Andrés & Tovar Reaños , Miguel, 2024. "Empowering homes? Unravelling the connection between energy efficiency and well-being," Papers WP784, Economic and Social Research Institute (ESRI).
    3. Corey Lang & Kevin Nakolan & David Rapson & Reid Taylor, 2024. "Do Bill Shocks Induce Energy Efficiency Investments?," Working Papers 2405, Federal Reserve Bank of Dallas.

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