Do Energy Efficiency Resource Standards Reduce Electricity Consumption? Evidence from Staggered State Adoption

Abstract

Energy Efficiency Resource Standards reduce electricity consumption. Exploiting staggered adoption across 28 U.S. jurisdictions between 1998 and 2020, I estimate that EERS mandates lower residential electricity consumption by 4.2 percent ($p < 0.01$). The event study reveals flat pre-trends and growing post-treatment effects, reaching 5–8 percent after 15 years. Realized savings of roughly 0.5 percent per year are about one-third of the 1–1.5 percent claimed by engineering studies—the remainder reflects free-ridership and rebound effects. Climate benefits exceed program costs by 4:1.