The Public Benefit of California's Investments in Energy Efficiency

Abstract

In the fiscal year 2000 budget, the California legislature requested that the California Energy Commission (CEC) prepare a plan to transfer energy efficiency programs financed by the public goods charge from their current home in the Public Utility Commission to the CEC. To inform decisions regarding the size and scope of energy efficiency programs, the Governor requested that the CEC provide for an independent review of the public benefits of energy efficiency to the State of California. The CEC asked RAND, a non-profit and non-partisan research organization, to perform the independent assessment. In this report we address the public benefits of energy efficiency to California and find that improvements in energy efficiency lead to: (1) A benefit to the state economy since 1977 that ranges from $875 per capita to $1300 per capita in 1998 dollars ($1998). (2) Approximately 40 percent lower air pollution emissions from stationary sources. (3) A reduced energy burden on low-income households.