Recognizing the Full Value of Energy Efficiency 3 Structuring benefits into utility, participant,... more Recognizing the Full Value of Energy Efficiency 3 Structuring benefits into utility, participant, and societal categories is widely employed in evaluating energy efficiency programs and measures .
One of the most severe barriers to implementation of cost-effective energy conservation is the fa... more One of the most severe barriers to implementation of cost-effective energy conservation is the fact that the person or company making the decision of what type of equipment to install in a building, or even of what building to construct, is often not the same person who will pay the energy bills over the life of the building. Because the builder will not have to pay the energy costs resulting from these decisions, they have little incentive to invest in energy-conserving measures.
T he Clean Power Plan (CPP), promulgated by the Environmental Protection Agency under Section 111... more T he Clean Power Plan (CPP), promulgated by the Environmental Protection Agency under Section 111(d) of the Clean Air Act, will require significant reductions in carbon dioxide (CO 2) emissions from the electric power sector. Specific reduction obligations vary by state, but overall reflect approximately a 32 percent reduction from 2005 emission levels. States can meet this obligation using a multitude of tools, including shifting generation from coal to natural gas power plants, developing low-carbon generating resources (e.g., hydro, nuclear, wind, solar, etc.), and making energy efficiency investments that reduce total required generation. 1 This paper discusses one often-overlooked way to reduce CO 2 emissions from the electric power sector: electricity rate design. Rate designs that encourage wise use of electricity can help states meet a significant portion of their CPP obligation, while rate designs that result in higher use can hinder-or significantly increase the cost of-state compliance with the CPP.
Policies and innovative market-based instruments are becoming more successful in improving enviro... more Policies and innovative market-based instruments are becoming more successful in improving environmental conditions in North America when they work in concert and in a political environment that allows for sound implementation. For example, the US Clean Air Act includes a cap-and-trade market mechanism to reduce sulphur dioxide (SO 2) emissions that costs less for each unit reduced than traditional environmental regulation. In addition, it is estimated that the Clean Air Act's direct benefit to human health and the environment will reach almost US$2 trillion by 2020, compared to the US$65 billion implementation cost. In Canada, Ontario's Green Energy and Green Economy Act supports a feed-in tariff that has contributed to the growth in renewable energy; wind production in Ontario, for example, increased from 15 megawatts in 2003 to more than 1 100 megawatts in 2009. Pricing externalities and integrated land management have shown the potential to increase the sustainability of land-use practices in North America. Governments can efficiently diminish environmental impacts by paying land managers for implementing best management practices such as riparian buffers, reduced tillage and reduced fertilizer application. In the United States, taxes and other incentives have increased the total area conserved by local, state and national land trusts to almost 15 million hectares, while payment for ecosystem service programmes, such as farmland preservation programmes that bring together the various benefits to society of farmland and agricultural production, have permanently preserved another 92 million hectares. The US Conservation Reserve Program also pays farmers to withdraw land from production in order to restore soils, providing benefits estimated at US$1.3 billion per year, excluding carbon sequestration, ecosystem protection and other less easily quantified benefits. The integrated watershed approach, in combination with technological instruments and economic incentives, has proved to be effective in addressing some complex water resource challenges in North America. Currently, the United States and Canada administer this approach through initiatives at the bi-national, regional or state/provincial levels rather than nationally. The Great Lakes and St Lawrence Cities Initiative, a cross-jurisdictional programme, has successfully increased water efficiency and reduced demand across the Great Lakes region. Increasing renewable energy as a part of the total primary energy supply provides multiple benefits. Case studies from states and provinces in North America indicate that a comprehensive policy approach leads to rapid expansion of renewable energy production. However, development across jurisdictions has been uneven and current policy regimes are not adequate to realize the necessary paradigm shift to achieve a sustainable energy system. This shift will lead to significant reductions in greenhouse gas emissions, and increasing renewable energy production is an integral part of this transition. Research shows that by increasing renewable energy deployment globally, up to 85 per cent of all carbon dioxide (CO 2) emissions could be avoided by 2050 (IPCC 2011). Main Messages Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b Develop and implement integrated land management and water-use plans that are based on sustainable use of renewable resources and on integrated assessments of socioeconomic and environmental potential. Freshwater Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 26c Improve the efficient use of water resources and promote their allocation among competing uses in a way that gives priority to the satisfaction of basic human needs and balances the requirement of preserving or restoring ecosystems and their functions, in particular in fragile environments, with human domestic, industrial and agriculture needs, including safeguarding drinking water quality. Land use Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b Develop and implement integrated land management and water-use plans that are based on sustainable use of renewable resources and on integrated assessments of socioeconomic and environmental potential. Energy Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b With a sense of urgency, substantially increase the global share of renewable energy sources with the objective of increasing its contribution to the total energy supply.
is a principal at The Brattle Group, specializing in the economics of policies and technologies t... more is a principal at The Brattle Group, specializing in the economics of policies and technologies that are focused on the energy consumer. He has worked with more than 50 clients across 30 states and seven countries, including utilities, policymakers, law firms, technology firms, research organizations, and wholesale market operators in matters related to retail rate design, energy efficiency, demand response, distributed generation and smart grid investments. He holds an M.
Recognizing the Full Value of Energy Efficiency 3 Structuring benefits into utility, participant,... more Recognizing the Full Value of Energy Efficiency 3 Structuring benefits into utility, participant, and societal categories is widely employed in evaluating energy efficiency programs and measures .
One of the most severe barriers to implementation of cost-effective energy conservation is the fa... more One of the most severe barriers to implementation of cost-effective energy conservation is the fact that the person or company making the decision of what type of equipment to install in a building, or even of what building to construct, is often not the same person who will pay the energy bills over the life of the building. Because the builder will not have to pay the energy costs resulting from these decisions, they have little incentive to invest in energy-conserving measures.
T he Clean Power Plan (CPP), promulgated by the Environmental Protection Agency under Section 111... more T he Clean Power Plan (CPP), promulgated by the Environmental Protection Agency under Section 111(d) of the Clean Air Act, will require significant reductions in carbon dioxide (CO 2) emissions from the electric power sector. Specific reduction obligations vary by state, but overall reflect approximately a 32 percent reduction from 2005 emission levels. States can meet this obligation using a multitude of tools, including shifting generation from coal to natural gas power plants, developing low-carbon generating resources (e.g., hydro, nuclear, wind, solar, etc.), and making energy efficiency investments that reduce total required generation. 1 This paper discusses one often-overlooked way to reduce CO 2 emissions from the electric power sector: electricity rate design. Rate designs that encourage wise use of electricity can help states meet a significant portion of their CPP obligation, while rate designs that result in higher use can hinder-or significantly increase the cost of-state compliance with the CPP.
Policies and innovative market-based instruments are becoming more successful in improving enviro... more Policies and innovative market-based instruments are becoming more successful in improving environmental conditions in North America when they work in concert and in a political environment that allows for sound implementation. For example, the US Clean Air Act includes a cap-and-trade market mechanism to reduce sulphur dioxide (SO 2) emissions that costs less for each unit reduced than traditional environmental regulation. In addition, it is estimated that the Clean Air Act's direct benefit to human health and the environment will reach almost US$2 trillion by 2020, compared to the US$65 billion implementation cost. In Canada, Ontario's Green Energy and Green Economy Act supports a feed-in tariff that has contributed to the growth in renewable energy; wind production in Ontario, for example, increased from 15 megawatts in 2003 to more than 1 100 megawatts in 2009. Pricing externalities and integrated land management have shown the potential to increase the sustainability of land-use practices in North America. Governments can efficiently diminish environmental impacts by paying land managers for implementing best management practices such as riparian buffers, reduced tillage and reduced fertilizer application. In the United States, taxes and other incentives have increased the total area conserved by local, state and national land trusts to almost 15 million hectares, while payment for ecosystem service programmes, such as farmland preservation programmes that bring together the various benefits to society of farmland and agricultural production, have permanently preserved another 92 million hectares. The US Conservation Reserve Program also pays farmers to withdraw land from production in order to restore soils, providing benefits estimated at US$1.3 billion per year, excluding carbon sequestration, ecosystem protection and other less easily quantified benefits. The integrated watershed approach, in combination with technological instruments and economic incentives, has proved to be effective in addressing some complex water resource challenges in North America. Currently, the United States and Canada administer this approach through initiatives at the bi-national, regional or state/provincial levels rather than nationally. The Great Lakes and St Lawrence Cities Initiative, a cross-jurisdictional programme, has successfully increased water efficiency and reduced demand across the Great Lakes region. Increasing renewable energy as a part of the total primary energy supply provides multiple benefits. Case studies from states and provinces in North America indicate that a comprehensive policy approach leads to rapid expansion of renewable energy production. However, development across jurisdictions has been uneven and current policy regimes are not adequate to realize the necessary paradigm shift to achieve a sustainable energy system. This shift will lead to significant reductions in greenhouse gas emissions, and increasing renewable energy production is an integral part of this transition. Research shows that by increasing renewable energy deployment globally, up to 85 per cent of all carbon dioxide (CO 2) emissions could be avoided by 2050 (IPCC 2011). Main Messages Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b Develop and implement integrated land management and water-use plans that are based on sustainable use of renewable resources and on integrated assessments of socioeconomic and environmental potential. Freshwater Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 26c Improve the efficient use of water resources and promote their allocation among competing uses in a way that gives priority to the satisfaction of basic human needs and balances the requirement of preserving or restoring ecosystems and their functions, in particular in fragile environments, with human domestic, industrial and agriculture needs, including safeguarding drinking water quality. Land use Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b Develop and implement integrated land management and water-use plans that are based on sustainable use of renewable resources and on integrated assessments of socioeconomic and environmental potential. Energy Johannesburg Plan of Implementation (JPOI) (WSSD 2002) Paragraph 40b With a sense of urgency, substantially increase the global share of renewable energy sources with the objective of increasing its contribution to the total energy supply.
is a principal at The Brattle Group, specializing in the economics of policies and technologies t... more is a principal at The Brattle Group, specializing in the economics of policies and technologies that are focused on the energy consumer. He has worked with more than 50 clients across 30 states and seven countries, including utilities, policymakers, law firms, technology firms, research organizations, and wholesale market operators in matters related to retail rate design, energy efficiency, demand response, distributed generation and smart grid investments. He holds an M.
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Papers by Jim Lazar