Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for Policy-Makers


United States Environmental Protection Agency
Energy and Environmental Economics, Inc.
Regulatory Assistance Project
Katrina Pielli
1 November 2008

This paper reviews the issues and approaches involved in considering and adopting cost-effectiveness tests for energy efficiency. All stakeholders can use this paper to understand the key issues and terminology, as well as the various perspectives each cost-effectiveness test provides and how the cost-effectiveness tests can be implemented to capture additional energy efficiency.