Are Residential Energy Efficiency Programs Effective? An Empirical Analysis in Southern California

Abstract

We evaluate 2010-2015 multiple residential energy efficiency subsidy programs using more than 11 million households’ electricity billing records in Southern California. We find that these programs reduce overall electricity usage by 4 percent. However, there are significant differences in their effectiveness. Pool pumps and refrigeration programs generate the largest savings (12 percent, and 6 percent, respectively). Lighting and HVAC retrofits programs generate less than 1 percent savings. We also find electricity consumption increases for dishwashers and clothes washers upgrades, building shell, and whole house retrofits. Program impact varies during certain time of the year and for certain building types. (JEL L68, L94, Q41)