Energy performance standards: a look at the economic issues

Conference · Tue Jan 01 04:00:00 EST 1980

OSTI ID:6611545

Nieves, L. A.

To determine the best level at which to set designed energy-consumption standards for buildings, economic efficiency based on prior determination of energy efficiency was chosen as the decision criterion. Life-cycle-cost minimization was identified as the best method of assessing tradeoffs between capital investment and fuel consumption in buildings, but there are several important parameters whose effect on the results must be carefully considered. The discount rate used to calculate the net present value of expense streams should represent the cost of capital for the entity from whose perspective the tradeoffs are being analyzed. For the purpose of setting an energy-performance standard, the discount period used should approximate the expected life of the building. Ideally, the fuel-price projections used should represent the marginal social costs of supply for a small region. Such estimates are simply unavailable at present. The next-best alternative may be a relatively highly aggregated estimate of average or perhaps marginal market costs.

• Research Organization: Battelle Pacific Northwest Labs., Richland, WA (USA)
• DOE Contract Number: AC06-76RL01830
• OSTI ID: 6611545
• Report Number(s): PNL-SA-8130; CONF-800635-5
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
291000 -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320100* -- Energy Conservation
Consumption
& Utilization-- Buildings
BUILDING CODES
BUILDINGS
COST
DECISION MAKING
ECONOMIC ANALYSIS
ECONOMICS
EFFICIENCY
ENERGY CONSUMPTION
ENERGY EFFICIENCY
FUELS
LIFE-CYCLE COST
PERFORMANCE
PRICES
STANDARDS
THERMAL EFFICIENCY