The Use of Economic Analysis in Developing an Energy Standard: Lessons Learned

Development of energy standards in the early 1970's was initiated and accelerated by the “energy crisis”. Criteria were proposed based on “professional judgement” and accepted when “consensus” was reached. That process performed a valued service but the conditions have since changed. Today, energy conservation is not a single focus point. It is constantly being challenged as to whether it is cost-effective. In that environment development of new energy standards has incorporated economic analysis as a basis for setting the criteria. The objective of this paper is to present the economic basis used to develop the proposed ASHRAE Standard 90.2P. The traditional life-cycle analysis approach was simplified by development of scalar ratios as a new technique. A national energy model was developed which integrated scalar ratios to illustrate the interdependence between economic assumptions and energy savings. This entire process was new and innovative, which challenged prior concepts and conventional procedures. Many lessons were learned and their influence on the standard development will be highlighted.