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How Much Energy Do Building Energy Codes Save? Evidence from California Houses

American Economic Review · 2016 · 137 citations · 18 references

Open access

TL;DR

Energy‑efficiency regulations for new buildings are a cornerstone of US environmental policy, with California pioneering and tightening such codes since 1978. The study evaluates the energy savings of California building codes by comparing houses built under different standards, analyzing temperature effects, and contrasting vintages with other states. The authors assess energy savings by comparing houses built under varying standards, controlling for building and occupant characteristics, examining temperature dependence, and contrasting California vintages with other states. All three analyses find that actual energy savings are far below the projections made when the codes were adopted. JEL codes: Q48, Q51, Q52.

Abstract

Regulations governing the energy efficiency of new buildings have become a cornerstone of US environmental policy. California enacted the first such codes in 1978 and has tightened them every few years since. I evaluate the resulting energy savings three ways: comparing energy used by houses constructed under different standards, controlling for building and occupant characteristics; examining how energy use varies with outdoor temperatures; and comparing energy used by houses of different vintages in California to that same difference in other states. All three approaches yield estimated energy savings significantly short of those projected when the regulations were enacted. (JEL Q48, Q51, Q52)