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Energy Efficiency and Climate Change Mitigation Policy

Panel: Energy and Environmental Policy: Planning for Greater Impacts

Authors:
Steven R. Schiller, Schiller Consulting, Inc.
William Prindle, ICF International
Richard Cowart, Regulatory Assistance Project
Arthur H. Rosenfeld, California Energy Commission

Abstract

This paper presents the need for energy efficiency to provide a significant share of the reductions in greenhouse gas (GHG) emissions that science indicates are required for climate stabilization. It discusses policy options for deploying energy efficiency resources in electricity (non-transportation) end-use markets to meet needed GHG emission reduction levels. This discussion includes a description of barriers inherent to climate policy design, as well as energy markets, that inhibit efficiency investment as an emissions reduction strategy. The paper also provides recommendations for effective mechanisms that incorporate end-use electricity energy efficiency into climate change mitigation efforts. Assuming that generator based cap and trade mechanisms will be favored over energy taxes, the authors recommend complementary actions outside of, but directly linked to and integral to the success of, the trading systems. We suggest using cap and trade allowance auction proceeds to invest in four categories of complementary programs: (a) energy efficiency, public benefit program activities, (b) energy efficiency resource standards, (c) technology, behavior, and policy research, development and demonstration, and (d) codes and standards development and enforcement.

Paper

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