Saving Energy, Lowering Bills, and Creating Jobs: An Economic Impact Analysis of Two Statewide Energy Efficiency Program Portfolios

摘要

Many states in the American South have large, untapped reserves of a clean, costeffectivernenergy resource: energy efficiency. Our analysis of two multi-year efficiency programrnportfolios proposed for Louisiana and Mississippi shows that investments in efficiency fosterrneconomic development well beyond the initial expenditures. These proposed programs would, onrnaverage, account for a combined $326 million is spent annually by these two states on efficiencyrnupgrades between 2010 and 2030.rnEconomic and fiscal impacts were measured using an input-output modeling frameworkrnbased on the IMPLAN software package. Spending from the policies affect the economy directlyrnthrough purchases of goods and services needed to make efficiency upgrades. These directrneffects generate additional purchases in related sectors of the economy. The sum of these directrnand indirect impacts makes up the total economic impacts estimated by our model. Totalrneconomic impacts are expressed in terms of annual increases in economic output, income, jobs,rnand tax revenues created by these policies. Additionally, we estimate the sustained economicrnbenefits beyond 2030 that occur due to spending in prior years.rnAn enhancement of our model allows us to incorporate the effects of a lost revenuernadjustment mechanism (LRAM) policy. LRAMs allow for a utility to recover revenue otherwisernlost from the implementation of efficiency programs, thereby removing the disincentive to investrnin efficiency. Furthermore, our model also considers the multi-year impact of the energy savingsrnresulting from the implementation of efficiency measures. This paper will be of interest tornpolicymakers interested in estimating the economic benefits of energy efficiency initiativesrnfunded using an LRAM provision.