Carl Blumstein

Overcoming social and institutional barriers to energy conservation

Although economically rational responses to the energy crisis, energy conservation actions may be hindered by social and institutional barriers. The nature of these barriers is explored and a taxonomy of barriers is proposed. Results of a series of interviews provide examples of the different types of barriers. Strategies for overcoming barriers are examined and some criteria for evaluating such strategies are developed. The importance of considering not only the efficiency of strategies in achieving the goal of energy conservation, but also their impacts on other—possibly competing—social and economic goals is emphasized. The need for increased efforts aimed at overcoming barriers and further research into the nature of these barriers is discussed.

A theory-based approach to market transformation

Abstract Market transformation (MT) programs face numerous challenges in identifying targets, understanding markets, and intervening effectively in them. Traditional energy efficiency program approaches generally lack the tools necessary to meet those challenges. New energy market realities and new public good roles for government will require more sophisticated forms of MT that focus on markets rather than end users. One such approach, being developed by the California Energy Commission, stresses the importance of theory-based MT, with tight linkages between existing theory, program design, empirical testing of crucial assumptions, evaluation, and theory development. Feedback and iterative learning are involved at all stages. Because a clear understanding of market dynamics is crucial to this approach, multidisciplinary research plays a key role.

Technical efficiency, production functions and conservation supply curves

In a recent paper Huntington lays some of the groundwork for more meaningful discussions between economists and technologists on the apparent underinvestment in energy efficiency. In a discussion illustrated by a production function, he points out that the technical efficiency of economic actors should be treated as an empirical question. Huntingtons groundwork can be further extended by observing that there is a close relationship between production functions and conservation supply curves, an analytical tool routinely used by technologists. Here we show that a conservation supply curve can be obtained from a production function by a simple transformation.

Another look at the strategic petroleum reserve: Should its oil holdings be privatized?

The sharp increases in crude oil prices in the 1970`s unleashed a gusher of economic and policy analyses concerning energy security. A consensus emerged concerning the desirability of building and using a large stock of oil to cushion the effects of a sudden loss of oil supply. The author examines the validity of this large stock of oil considering changes in the oil market and whether the oil holdings of the Strategic Petroleum Reserve should be privatized. 12 refs.

Energy-efficiency research, development and demonstration: New roles for US states☆

Abstract At least eight states have established energy research, development and demonstration (RD&D) programmes. In contrast to federal and utility energy RD&D, most states emphasize applied research on end-use efficiency and renewable energy. States also try to closely link research and technology deployment, in some cases deliberately blurring the line between the two. The states discussed in this paper spend about US

Non-sampling errors in surveys of residential energy consumption

39 million per year for energy RD&D, or one-fifth of the US Department of Energy (DOE) budget for conservation and renewable energy RD&D. When indexed per capita or per energy dollar, the average rate of state RD&D spending on conservation and renewables is about 65–75% that of the US DOE.

The California Electricity Crisis: Editors’ Introduction

Surveys are an important source of information about energy consumption in the residential sector. Most published estimates of survey error only take account of the uncertainty that arises from the random variation that is present when only a sample of the entire population is surveyed. We examine other sources of survey error, called non-sampling errors, and assess the degree to which these sources of error may affect the usefulness of survey data. Two types of error are considered: non-response error which arises from a failure to obtain data from a chosen unit in the sample and response error which arises when erroneous data are obtained from a chosen unit. Response error is found to be more serious than non-response error in the survey results examined here. Response error is found to be most likely to occur when respondents are asked to provide quantitative information such as estimates of the average monthly utility bill or the floor area of the residence. It is suggested that response error can seriously affect the reliability of the results from analytical methods that are frequently applied to survey data. It is argued that this fact justifies increased efforts to reduce the frequency of occurrence of response error in future surveys.

Distribution of the intensity of electricity use in commercial premises appears to be highly skewed

This short piece introduces the papers in the special issue on the California Energy Crisis of 2000/2001. The papers illustrate aspects of the crisis, such as the role of the gas market, future trends for investment, and the crisis’ impact on consumers. Three papers analyze policy-makers’ responses to the crisis, with case studies of over-lapping regulation, the trade-off between prices, reliability and the environment, and policies that helped achieve demand reductions in the summer of 2001. Two papers consider lessons for other countries, in Latin America and Europe.

How high are option values in energy-efficiency investments?

Abstract A survey of commercial premises in one electric utililys service area indicates that the distribution of the intensity of electricity use in these premises is highly skewed. As a consequence, the preponderance of electricity consumption is in the more electricity-intersive floor area, with more than 50% occurring in the 20% of floor area that is most electricity-intensive. This result may be important for the design and conduct of energy conservation programs in the commercial sector.