Pennies per Pound: The Return on Investment from Appliance Efficiency Technical Assistance
Jim McMahon, Better Climate
Analysis of 10 standards and labeling case studies finds appliance energy efficiency is a cost-effective climate mitigation tool
Calculating the Return on Investment of Appliance Energy Efficiency
While the social and economic benefits of energy efficiency are widely documented, few studies have explored the cost-effectiveness of policy interventions from an administrative perspective.
This study adds to the evidence base that appliance energy efficiency is a worthwhile investment, comparing the administrative costs of running such policies and their climate impact to the social cost of carbon.
By calculating the return on investment of 10 policy interventions, we find the administrative costs needed to achieve a one-ton reduction in CO2e are below the social cost of carbon, with estimates ranging from less than one cent per ton to one dollar per ton.
Our findings underscore the large value for money appliances standards and labeling policies pose to governments and implementing agencies. Read the full report to explore each case study in detail.
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