The Public Benefit of Energy to the State of Massachusetts
Abstract
RAND, a nonprofit and nonpartisan research organization, has prepared this report with funding from the Energy Foundation, a partnership of major foundations interested in sustainable energy. In this study, we estimate energy efficiency from measures of energy intensity (the energy consumed per unit of output) that have been controlled for sectoral composition, energy prices, and other factors. In this report we address the public benefits of our estimate of energy efficiency to Massachusetts and find that improvements in energy efficiency in the commercial, industrial, and residential sectors are associated with: (1) A benefit to the state economy since 1977 that ranges from $1,664 per capita to $2,562 per capita in 1998 dollars. (2) Approximately 11 percent lower air emissions from Massachusetts's share of stationary sources in the Northeast Power Coordinating Council. (3) A reduced energy burden on low-income households. This study measures the benefit to the state economy of improvements in energy efficiency in the industrial and commercial sectors from 1977 to 1997. It also predicts the potential future impacts of continued improvements in energy efficiency. This report addresses four key issues and assumptions: (1) This analysis shows that declines in energy intensity are associated with increases in gross state product (GSP), holding sectoral composition, energy prices, and other factors constant. (2) When these other factors are held constant, changes in energy intensity can be an approximation of changes in energy efficiency. Thus, the conclusion is that improvements in energy efficiency are associated with improvements in gross state product.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2002
- Accession Number
- ADA405697
Entities
People
- Christopher Pernin
- Mark Bernstein
- Mark Hanson
- Sam Loeb
Organizations
- RAND Corporation