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December 12, 2011
Brattle Principal Ahmad Faruqui Discusses U.S. Measures for Encouraging Energy Efficiency for Australian Workshop on Energy Efficiency Policy

Brattle principal Ahmad Faruqui recently presented on U.S. regulatory mechanisms for promoting energy efficiency before the Australian Workshop on Policies for Energy Provider Delivery of Energy Efficiency, which took place on December 12, 2011 in Sydney. Dr. Faruqui’s presentation highlighted the evolution of energy efficiency developments in the U.S. over the past four decades and discussed the various channels through which energy efficiency is delivered. These channels include information sharing to shape consumer behavior; market transformation, in which new technologies are developed and installed; codes and levels of standards; rate design; and spending, including rebates and financing. Dr. Faruqui explains how energy efficiency programs in the U.S. are operating on a scale similar to power plant construction, and that ten states currently have energy efficiency programs that are on a scale large enough to displace power plants altogether, saving an additional 0.4 to 1 percent or more of load each year. He concludes that the intensity of energy efficiency varies greatly across states, with some states displaying significant advances and other showing only modest improvements. A key force behind the variation across the country is the intensity of regulatory pressure by each state, which depends on the state’s history with energy efficiency, as well as the political and cultural make-up of the policy makers, according to Dr. Faruqui. Dr. Faruqui’s complete presentation, “U.S. Regulatory Mechanisms for Promoting Energy Efficiency,” can be downloaded using the link below.