Working Paper: NBER ID: w19123
Authors: Arik Levinson
Abstract: Starting in the 1970s California's residential electricity consumption per capita stopped increasing, while other states' electricity use continued to grow steadily. Similar patterns can be seen in non-electric energy, industry, and transportation. What accounts for California's apparent energy savings? Some credit the strict energy efficiency standards for buildings and appliances enacted by California in the mid-1970s. They argue that other states and countries could replicate California's gains, and that California should build on its own success by tightening those standards further. Skeptics might point to three long-run trends that differentiate California's electricity demand from other states: (1) shifting of the U.S. population towards warmer climates of the South and West; (2) relatively small income elasticity of energy demand in California's temperate climate; and (3) evolving differences between the demographics of households in California and other states. Together, these trends account for around 90 percent of California's apparent residential electricity savings, thus providing no lessons for other states or countries considering adopting or tightening their energy efficiency standards.
Keywords: No keywords provided
JEL Codes: Q4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Population migration to warmer climates (F22) | increased energy demand (Q41) |
| California's mild climate (N50) | lower energy demand growth (Q47) |
| Demographic changes (household size) (J10) | significant contribution to energy savings in California (Q41) |
| Regulatory policies (G18) | California's energy savings (Q41) |
| Demographic changes and geographic factors (J11) | apparent savings in residential electricity consumption (D12) |
| Energy efficiency regulations (L51) | replicability of California's model elsewhere (C59) |