Freakonomics and the Jevons Paradox

bulb-15629_1280Do Energy Efficiency Improvements Make Us Use More Energy?

I was quite intrigued this week by the latest podcast offering from Freakonomics. Aside from their somewhat insulting “discovery” that the study of the environment isn’t diametrically opposed to that of economics (a conversation for another day), they put forward an engaging analysis of the effectiveness of energy efficiency. Their discussion centered around the work of Arik Levinson, an economist at Georgetown University. The gist of Freakonomics’ argument, based on Levinson’s work, is that California’s 1978 residential energy efficiency regulations did not result in a decrease in per capita electricity use, and that the differences between energy use in California and other states can be explained by a particular manifestation of the rebound effect: the Jevons paradox.

The podcast chronicles Levinson’s research on the impacts of these building codes, which was recently published in a working paper by the National Bureau of Economic Research. For the study, Levinson analyzed data around California’s housing regulations in three different ways. He says it best in his own words:

First, I compare[d] current electricity use by California homes of different vintages constructed under different standards, controlling for home size, local weather, and tenant characteristics. Second, I examine[d] how electricity in California homes varies with outdoor temperatures for buildings of different vintages. And third, I compare[d] electricity use for buildings of different vintages in California, which has stringent building energy codes, to electricity use for buildings of different vintages in other states.  All three approaches yield[d] the same answer: there is no evidence that homes constructed since California instituted its building energy codes use less electricity today than homes built before the codes came into effect.

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