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Real Prospects for Energy Efficiency in the United States (2010) / Chapter Skim
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Appendix E: Estimating the Net Costs and Benefits of Energy Savings
Pages 317-318

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From page 317...
... An energy-saving product might be out of the question for the customer who cannot afford the additional cost, might be of marginal benefit for the customer using a credit card, and might be of large net benefit to the customer paying a zero interest rate. Analysts attempt to measure energy savings to consumers by means of vari ous measures.
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From page 318...
... For the more efficient air conditioner, there is no net savings for someone who would have to pay a credit card interest rate, but a large savings for someone taking the money from a checking account. The ROI and NPV depend both on the annual savings and on how long the air conditioner provides these savings -- for example, if the building in which the air conditioner is installed will be torn down and the air conditioner destroyed in 3 years, that is the relevant period over which to calculate the return.
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Key Terms

  • energy savings
  • purchase price
  • additional purchase
  • efficient air
  • credit card

  • analysts attempt
  • rate implicit
  • economic life
  • npv depend
  • credit cards

  • marginal benefit
  • initial cost
  • conditioner costs
  • lower energy
  • net cost

  • annual savings
  • energy expenditures
  • measure energy
  • conditioner destroyed
  • customer using

  • net savings
  • checking account
  • incandescent lamp
  • energy increases
  • efficient model

  • efficient product
  • net benefit
  • conditioner provides
  • additional cost
  • ous measures


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