Some Implications of Policies to Slow the Growth of Electricity Demand in California

by Kent P. Anderson

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback83 pages $25.00 $20.00 20% Web Discount

Demand projections for California indicate that the electric utility system may grow seven times its 1970 size by the year 2000. This report identifies conditions under which policies for slowing the growth of electricity demand might be desirable and discusses likely economic costs. The report includes (1) a general description, in qualitative terms, of the major economic effects of a policy-induced slowing of electricity demand growth in any given state or region, and (2) an examination of the quantitative evidence for California regarding the two potentially most worrisome side-effects of growth-slowing policies: investment relocation and the acceleration of fossil fuel demand growth. In addition, the efficiency of electricity pricing is analyzed in a case study of a Southern California utility. (See also R-1084, R-1115, R-1116.)

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/principles.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.