Methods in open policy analysis: An application to California's building energy codes

Abstract

AbstractHave building energy codes lowered energy consumption, and have their benefits outweighed costs? Using 2000 Census data, I estimate household energy expenditures by decade of home construction, controlling for household and home characteristics. I find homes built in the 1980s used $35 less in electricity and $46 less in natural gas, per year, compared to 1970s era homes. For Sacramento, energy codes pass a cost‐benefit test when low‐end policy costs are used, but fail with base‐case costs. This study also clarifies how a cost‐benefit analysis (CBA) for a representative household fits into a comprehensive CBA.