Green Savings by Marilyn A. Brown

Author:Marilyn A. Brown
Language: eng
Format: epub
ISBN: 9781440831218
Publisher: ABC-CLIO

6.1.2 Multiple Scale U.S. Governance of Energy Efficiency

An overview of the policies specifically designed for promoting energy efficiency reveals the complexities and difficulties of policy implementation. Many studies evaluate and quantify the impacts of individual programs and policies, but they produce inconsistent conclusions with regard to the size of the energy-saving potential and the cost-effectiveness of policies.3 Controversy exists about the magnitude of the energy-efficiency potential that can be achieved with policy efforts.

As the result of decades of policy intervention, the U.S. energy market is subject to multiple-level, heavy regulations that constantly challenge the ability to make a business case for energy efficiency. Multiple layers of complex regulations control the energy flow chain from suppliers and distributors to consumers. Energy regulations are composed of rules from federal agencies, such as the Federal Energy Regulatory Commission (FERC) and the Federal Power Marketing Administrations, state and local agencies, policies of utility companies and balancing authorities, as well as nongovernment statutory organizations such as the North American Electric Reliability Corporation (NERC). Multilevel regulations create complications that throttle the expansion of efficiency measures. Many experts recommend deregulation of the U.S. electricity market.4

On the other hand, scholars argue that multiscale governance, articulated as polycentrism, has the advantage of providing uniformity and flexibility simultaneously. Small- and medium-scale governance can be more credible in policy implementation and enforcement, which complements large-scale governance providing a unified framework for policy actions. Energy-efficiency policy in the United States is a typical example of multiple-scale governance. Federal legislation provides unified targets and strategic guidance that frame state and local actions. State and local governments provide diverse programs and policy instruments to deal with local circumstances and challenges.

Does this multiple-scale governance system have visible impact on improving energy efficiency at the state level? To answer this question, the following section investigates the energy-efficiency policies of U.S. states and quantifies their impacts on state efficiency performance measured by electricity productivity.

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