The Public Benefit of Energy Efficiency to the State of Washington

The Public Benefit of Energy Efficiency to the State of Washington

The Public Benefit of Energy Efficiency to the State of Washington

The Public Benefit of Energy Efficiency to the State of Washington

Synopsis

Addresses the public benefits of improvements in energy efficiency to the economy of Washington State

Excerpt

Energy Intensity in the Industrial, Commercial and Residential Sectors

The following is a brief description of the past trends in energy intensity in Washington, comparable states, and for the U.S in general. For comparison, Oregon, Minnesota, and Colorado were selected, based on similarity of GSP and energy profiles. These trends illustrate Washington's energy setting, within which we have set–up our analysis, and from which we can interpret our results.

Industrial sector

The industrial sector is that subdivision of the economy that comprises manufacturing, agriculture, mining, construction, fishing and forestry. Its components can be identified by their Department of Commerce Standard Industrial Classification (SIC) codes corresponding to these economic activities. In addition, the DOE (U.S. Department of Energy) has used a number of indicators of energy intensity to characterize changes in the energy consumption pattern in the industrial sector. These include energy use per gross product originating, per value added, per value of production and per industrial production (DOE/EIA 1995). In our analysis, we use energy consumption per gross state product originating from the industrial sector. In this section, the energy intensities reported have not been controlled for price of energy, sectoral composition, or other factors, and thus may include combined effects of price, capital, labor, and other factors besides energy efficiency.

Figure 2.1 is a plot of energy intensity in the industrial sector in Washington, Colorado, Minnesota, and Oregon from 1977 to 1997. In Figure 2.1, we see that the energy intensity in Washington and Oregon is higher overall than that in their peer states. Yet, Washington and Oregon have generally seen greater declines in industrial energy intensity than the other states, especially since the early 1980s when the relatively greater . . .

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