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Major $ Savings

Major $ Savings

According to The Efficiency Boom report, the net present value (NPV) of existing standards based on purchases through 2035 is about $1.1 trillion, more than the amount spent on all U.S. hospital care in 2010 (NPV is the difference between the present value of savings and the present value of costs). About 40% of the cumulative energy savings are due to DOE rulemakings, with a large portion completed within the last few years. The first two standards laws (NAECA 1997 & 1988 and EPAct 1992) contribute half of the total NPV. The standards in these two laws have been accruing savings for more than 15 years and are continuing to accrue savings.

Our estimate of NPV likely underestimates the economic benefits of existing standards because we have assumed that the incremental cost of more-efficient products remains constant over time. In reality, historical data show that the real cost of appliances and equipment tends to decrease over time. 

For more details, see pages 3-4 of The Efficiency Boom report

The NPV for the 34 new and updated standards evaluated for The Efficiency Boom based on purchases through 2035 is around  $170 billion or about the same as was spent on higher education in the U.S. in 2010. Twelve standards will each reduce consumer and business energy bills by at least a billion dollars a year by 2035.

For more details, see pages 15-16 of The Efficiency Boom report


References for the savings comparisons above:
Hospital Care data (see table 2): https://www.cms.gov/NationalHealthExpendData/downloads/tables.pdf
Higher education data (see table 2.4.5): http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1&acrdn=2

Appliance Standards Awareness Project - 16 Cohasset Street - Boston, MA 02131
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