Measuring the savings from energy efficiency policies: a step beyond program evaluation

Recent worldwide events are producing growing agreement that rapid, large-scale energy efficiency is a necessary, feasible, and economical way of reducing the need for new energy supplies. Yet, many obstacles must be overcome for commitments to energy efficiency to be successful, perhaps none more important than measuring policy-related energy savings. To address this topic, this paper provides several examples of how readily available MWH sales data can be employed to monitor and verify energy efficiency policies and detect changes in trends at the state and utility levels. The analyses used for this kind of savings verification are collectively referred to in this paper as counterfactual simulation. The goal of this paper is to demonstrate the practicality and value in using standardized research designs and econometric models to inform energy efficiency policymakers and the public as to the benefits of energy efficiency policies.