Issues in assessing the cost-effectiveness of coordinated DSM programs
| Title: | Issues in assessing the cost-effectiveness of coordinated DSM programs |
|---|---|
| Format: | Journal Article |
| Publication Date: | 1995 |
| Published In: | Utilities Policy |
| Description: | Coordinated demand-side management (DSM) programs, co-administered by government agencies and electric and gas utilities, are likely to grow in importance in the coming years. Because of the unique features of these types of DSM programs, special care must be taken in assessing their cost-effectiveness. In this paper, we discuss these features, suggest how standard cost-effectiveness measures must be adapted to accommodate them, and show how important these adaptations are in assessing the cost-effectiveness of coordinated programs. At first, we use a least-cost, financial approach. The discussion indicates that failure to account properly for the special features of coordinated programs materially affects estimates of cost-effectiveness and, in extreme cases, may lead to rejection of otherwise cost-effective programs. Then, extending the analysis to include economic factors, we speculate that most types of coordinated programs are more attractive than when evaluated on a financial basis. © 1995. |
| Ivan Allen College Contributors: | |
| Citation: | Utilities Policy. 5. Issue 1. 47 - 53. ISSN 0957-1787. DOI 10.1016/0957-1787(95)00013-P. |
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