Business Case for Energy Efficiency in Support of Climate Change Mitigation, Economic and Societal Benefits in the United States

Abstract

This study seeks to provide policymakers and other stakeholders with actionable information towards a road map for reducing energy consumption in the most cost-effective way. A major difference between the current study and some others is that we focus on individual equipment types that might be the subject of policies - such as labels, energy performance standards, and incentives - to affect market transformation in the short term, and on high-efficiency technology options that are available today. The approach of the study is to assess the impact of short-term actions on long-term impacts. “Short term” market transformation is assumed to occur by 2015, while “long-term” energy demand reduction impacts are assessed in 2030. In the intervening years, most but not all of the equipment studied will turn over completely. The 15-year time frame is significant for many products however, indicating that delay of implementation postpones impacts such as net economic savings and mitigation of emissions of carbon dioxide. Such delays would result in putting in place energy-wasting technologies, postponing improvement until the end of their service life, or potentially resulting in expensive investment either in additional energy supplies or in early replacement to achieve future energy or emissions reduction targets.