ABSTRACT
Measuring the effectiveness or total energy savings from a conservation initiative or program can be difficult for a number of reasons and can lead to overly optimistic (or pessimistic) estimates. One problem is defining the baseline energy efficiency improvement that would occur in the absence of any program and avoiding double counting of the same energy savings attributed to multiple government programs. Another is accounting for “free riders,” people who receive rebates for energy efficient equipment that they would have purchased anyway. There is also the rebound effect, where people increase their utilization of equipment (for example, leaving their fluorescent lights on) because it costs less to operate. Another consideration is whether all of the salient costs (costs to the government, business, and consumers and losses due to quality changes) and the benefits of the programs (including otherwise unaccounted-for spillovers to energy savings in other areas) are being accounted for.
