In last November's IAEE meetings, Amory Lovins reported estimates of energy saving that will result from the adoption of more efficient appliances. This note addresses three questions related to the subject. 1. The realism of Lovins' estimate of energy saving. 2. The way these estimates fare when juxtaposed against the price elasticity of demand used by Lovins. 3. The light my recent empirical results shed on the magnitude of energy saving we can realistically expect. In the process, the note touches on the polar opposite policies that Lovins has been advocating.
California Public Utilities Commission (1981). Application of PG&E for Authority, Among Other Things, to Increase its Rates and Charges for Electric and Gas Service. Application No. 60153, 58545, 58546, Testimony of PUC Staff, ALJ Kenji Tomita (July, 23).
2.
HausmanJerryJaskowPaul A. (1982). “Evaluating the Costs and Benefits of Appliance Efficiency Standards,” American Economics Review. Papers and Proceedings (May), pp. 220-225.
3.
Khazzoom Daniel J.(1980). “Economic Implications of Mandated Efficiency Standards for Household Appliances.” Energy Journal (October), pp. 21-40.
4.
Khazzoom Daniel J.(1986). An Econometric Model Integrating Conservation Measures in the Estimation of the Residential Demand for Electricity. Greenwich, Conn.: JAI Press. Lovins, Amory (1984). Least-Cost, Reliable Electrical Service as an Alternative to Seabrook. Direct Testimony before the New Hampshire Public Utilities Commission, Docket #84-200 (October15).
