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The Energy Journal THTHEE ENENERERGGYY JOJOUURRNNAALL International IAEE Association for Energy Economics www.iaee.org STRATEGIES FOR MITIGATING CLIMATE CHANGE THROUGH ENERGY EFFICIENCY:AMULTI-MODEL PERSPECTIVE Preface Adonis Yatchew Mitigating Climate Change Through Energy Efficiency: An Introduction and Overview Hillard Huntington and Eric Smith The Policy Implications of Energy-Efficiency Cost Curves Hillard G. Huntington Energy and Emissions in the Building Sector: A Comparison of Three Policies and Their Combinations Owen Comstock and Erin Boedecker Modeling Efficiency Standards and a Carbon Tax: Simulations for the U.S. using a Hybrid Approach Rose Murphy and Mark Jaccard The Value of Advanced End-Use Energy Technologies in Meeting U.S. Climate Policy Goals Page Kyle, Leon Clarke, Steven J. Smith, Son Kim, Mayda Nathan, and Marshall Wise Impact of Relative Fuel Prices on CO2 Emission Policies Nick Macaluso and Robin White Subsidizing Household Capital: How Does Energy Efficiency Policy Compare to a Carbon Tax? Warwick J. McKibbin, Adele C. Morris, and Peter J. Wilcoxen Subsidies, Standards and Energy Efficiency Jan Imhof Policy Effectiveness in Energy Conservation and Emission Reduction Mei Yuan, Sugandha Tuladhar, Paul Bernstein, and Lee Lane Energy Demand Analytics Using Coupled Technological and Economic Models Samuel G. Steckley, Douglas S. Meade, Carol Shay Lenox, Kenneth C. Hoffman, David H. Reid, and Bradley C. H. Schoener Strategies for Mitigating Climate Change Through Energy Efficiency: the RFF Haiku Electricity Market Model Anthony Paul, Matt Woerman, and Karen Palmer Comparing and Combining Energy Saving Policies: Will Proposed Residential Sector Policies Meet French Official Targets? Louis-Gae¨tan Giraudet, Ce´line Guivarch, and Philippe Quirion An Assessment Study of Energy Efficiency Policy Measures for Japanese Commercial Sector Masahito Takahashi and Hiroshi Asano Volume 32 (Special Issue 1) October, 2011 International Association for Energy Economics doi: 10.5547/ISSN0195-6574-EJ-Vol32-SI1 President Mine Yu¨cel President-elect Lars Bergman Immediate Past President Einar Hope Past President Georg Erdmann Vice President for Finance Omowumi Iledare Vice President for Communications Roberto Malaman Vice President for Publications Christian von Hirschhausen Vice President For Business and Government Affairs Mark Finley Vice President for Academic Affairs Edmar Luiz de Almeida Vice President for Conferences Gurkan Kumbaroglu Appointed Council Member Carlo Andrea Bollino Appointed Council Member Hoesung Lee Appointed Council Member Kenneth Medlock Appointed Council Member David Newbery Appointed Council Member Benjamin Schlesinger Appointed Council Member Thomas Tangeras The Energy Journal is a publication of the Energy Economics Education Foundation, Inc., 28790 Chagrin Blvd., Suite 350, Cleveland, OH, 44122-4630, USA, a non-profit organization, in association with the International Association for Energy Economics. Membership dues for the IAEE include subscriptions to The Energy Journal and the IAEE Energy Forum. Subscriber and Membership matters should be sent to IAEE, 28790 Chagrin Blvd., Suite 350, Cleveland, OH 44122; phone 216-464-5365, fax 216-464-2737.. Non-member subscriptions to The Energy Journal are $475 for institutions, libraries, and individuals. Postage and handling are paid by the publisher. Outside the United States and Canada, non- member subscriptions are $500. Articles appearing in The Energy Journal are listed in both Envir. Per. Bibliography and The Journal of Economic Literature and are indexed/abstracted in ABI/Inform, EconLit, JEL on CD, ISI Journal Citation Reports, Web of Science, SciSearch, Research Alert, Ei COMPENDEX, Trade and Industry Index, PAIS International, DOE Energy, Energy/ Enviroline, and Wilson Business Abstracts, and the following EBSCO databases: Academic Search Premier and Business Source Premier. Authorization to photocopy articles appearing in The Energy Journal for internal or personal use, or the internal or personal use of specific clients, is granted by IAEE provided that you first register with the Copyright Clearance Center. Please access www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of uses. The Energy Journal is available in reference systems (e.g., microfilm, CD-ROM, full text etc.) produced by the ProQuest Co. (ProQuest Information & Learning), the Gale Group (Info Trac databases) and the H.W. Wilson Companys Business Periodicals Index. For further information please contact ProQuest Company at 734-761-4700, www.proquestcompany.com, the Gale Group at 248-699-4253,www.galegroup.com, or H.W. Wilson Co., at 718- 5888400, www.hwwilson.com, or EBSCOhost. AUTHORS: Please see back pages for information on the proper style of submissions. ADVERTISING INFORMATION: For a complete media kit, contact Marketing Department, IAEE Headquarters, 28790 Chagrin Blvd., Ste. 350, Cleveland, OH, 44122-4630. Phone: 216-464-5365, fax: 216-464-2737. E-mail: [email protected]. Homepage: http://www.iaee.org. The Energy Journal (ISSN 0195-6574 / E-ISSN 1944-9089) is published quarterly by the Energy Economics Education Foundation, 28790 Chagrin Blvd., Ste 350, Cleveland, OH, 44122 and additional mailing offices. Subscription price $475, U.S. and Canada; $500 other countries. Application to mail at Periodicals Postage Price is Pending at Cleveland, OH 44101. POSTMASTER: Send address changes to EEEF, 28790 Chagrin Blvd., Ste 350, Cleveland, OH 44122. Copyright ᭧ 2011 by the International Association for Energy Economics. All rights reserved. The editors and publisher assume no responsibility for the views expressed by the authors of articles printed in The Energy Journal. Printed in the U.S.A. i Editor-in-Chief, Adonis Yatchew Editors, Lester C. Hunt and James L. Smith Associate Editor, Geoffrey Pearce European Book Review Editor, Peter J.G. Pearson Board of Editors Lars Bergman J. Daniel Khazzoom Dieter Schmitt Stockholm School College of Business Universita¨t Essen of Economics San Jose State University Germany Carol A. Dahl Kenichi Matsui Margaret F. Slade Colorado School of Institute of Energy The University of Mines, Golden, CO Economics, Tokyo Warwick Joy C. Dunkerley Mohan Munasinghe Coventry, UK Consulting Economist Energy Advisor Thomas Sterner Washington, DC Colombo, Sri Lanka Go¨teborg University Massimo Filippini Rajendra K. Pachauri Sweden University of Lugano Tata Energy Research Catherine Waddams ETH Zurich CEPE Institute, New Delhi University of East Anglia Jean-Michel Glachant Francisco R. Parra United Kingdom European University Consultant W. David Walls Institute, Florence, Italy F.R. Parra Inc. University of Calgary Richard L. Gordon Peter J.G. Pearson Alberta, Canada Pennsylvania State Cardiff University, Wales Leonard Waverman University United Kingdom University of Calgary James M. Griffin Andre´Plourde Alberta, Canada Texas A & M University University of Alberta John P. Weyant College Station, Texas Alberta, Canada Stanford University, CA William W. Hogan Hossein Razavi Franz Wirl Harvard University The World Bank University of Vienna, John F. Kennedy School Washington, D.C. Department of Business of Government Ali M. Reza Studies, Austria Einar Hope College of Business Catherine Wolfram Norwegian School San Jose State University Haas School of Business of Economics and Adam Rose University of California Business Administration Berkeley, CA University of Southern Mark K. Jaccard California Chi-Keung Woo Simon Fraser University Los Angeles, CA Energy and Environmental British Columbia, Canada Geoffrey Rothwell Economics, Inc., San Francisco, CA Edward Kahn Stanford University Analysis Group, Inc. USA San Francisco, CA ii STRATEGIES FOR MITIGATING CLIMATE CHANGE THROUGH ENERGY EFFICIENCY: A MULTI-MODEL PERSPECTIVE A Special Issue of The Energy Journal GUEST EDITORS HILLARD G. HUNTINGTON Energy Modeling Forum Stanford University ERIC SMITH U.S. Environmental Protection Agency iii iv THE ENERGY JOURNAL Volume 32 (Special Issue 1) August, 2011 STRATEGIES FOR MITIGATING CLIMATE CHANGE THROUGH ENERGY EFFICIENCY: A MULTI-MODEL PERSPECTIVE Table of Contents Preface Adonis Yatchew vi Mitigating Climate Change Through Energy Efficiency: An Introduction and 1 Overview Hillard Huntington and Eric Smith The Policy Implications of Energy-Efficiency Cost Curves 7 Hillard G. Huntington Energy and Emissions in the Building Sector: A Comparison of Three Policies 23 and Their Combinations Owen Comstock and Erin Boedecker Modeling Efficiency Standards and a Carbon Tax: Simulations for the U.S. 43 using a Hybrid Approach Rose Murphy and Mark Jaccard The Value of Advanced End-Use Energy Technologies in Meeting U.S. 61 Climate Policy Goals Page Kyle, Leon Clarke, Steven J. Smith, Son Kim, Mayda Nathan, and Marshall Wise Impact of Relative Fuel Prices on CO2 Emission Policies 89 Nick Macaluso and Robin White Subsidizing Household Capital: How Does Energy Efficiency Policy Compare 111 to a Carbon Tax? Warwick J. McKibbin, Adele C. Morris, and Peter J. Wilcoxen Subsidies, Standards and Energy Efficiency Jan Imhof 129 Policy Effectiveness in Energy Conservation and Emission Reduction 153 Mei Yuan, Sugandha Tuladhar, Paul Bernstein, and Lee Lane Energy Demand Analytics Using Coupled Technological and Economic 173 Models Samuel G. Steckley, Douglas S. Meade, Carol Shay Lenox, Kenneth C. Hoffman, David H. Reid, and Bradley C. H. Schoener Strategies for Mitigating
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