Bounded decision making and analytical biases in demand side management

Demand side management (DSM) programs across the United States commonly approach barriers to energy efficiency through technical/economic means and evaluate their impact through technical/economic analysis. To the extent that non-technical barriers exist and influence decision making, they complicate the expected capture of savings. Two utility DSM projects -- Pacific Gas and Electric`s Advanced Customer Technology Test for Maximum Energy Efficiency (ACT{sup 2}) and Bonneville Power Administration`s Energy Edge -- serve as case studies to illustrate how non-technical barriers to specific energy-efficiency measures (EEMs) can limit technical conservation potential. An analysis of rejected EEMs suggest that lessons about non-technical barriers to specific energy-efficiency measures (EEMs) can limit technical conservation potential. An analysis of rejected EEMs suggests that lessons about non-technical barriers may be lost or obscured because of the predominant focus on technical/economic criteria over social, institutional, or cultural constraints. These findings support the need for different evaluation methodologies and further social science research devoted to understanding the non-technical barriers confronted by DSM project participants

Bounded Decision Making and Analytical Biases in Demand Side Management

Demand side management (DSM) programs across the United States commonly approach barriers to energy efficiency through technical/economic means and evaluate their impact through technical/economic analysis. To the extent that non-technical barriers exist and influence decision making, they complicate the expected capture of savings. Two utility DSM projects -- Pacific Gas and Electric`s Advanced Customer Technology Test for Maximum Energy Efficiency (ACT{sup 2}) and Bonneville Power Administration`s Energy Edge -- serve as case studies to illustrate how non-technical barriers to specific energy-efficiency measures (EEMs) can limit technical conservation potential. An analysis of rejected EEMs suggest that lessons about non-technical barriers to specific energy-efficiency measures (EEMs) can limit technical conservation potential. An analysis of rejected EEMs suggests that lessons about non-technical barriers may be lost or obscured because of the predominant focus on technical/economic criteria over social, institutional, or cultural constraints. These findings support the need for different evaluation methodologies and further social science research devoted to understanding the non-technical barriers confronted by DSM project participants