Abstract

This article offers a simple, easy-to-use tool, CECANT, that allows policy analysts to calculate the economy-wide or sectoral energy use effects of new or prospective energy efficiency technologies. Such effects are in general intricate and subtle. Unlike more complex general equilibrium models, the tool requires only that the researcher has access to econometric estimates of the economy’s (or sector’s) cost function. CECANT enables analysts to rapidly address key policy questions related to reducing carbon emissions, such as setting R&D priorities, managing the deployment of different technologies in different sectors, and comparing technology effectiveness across countries. A user-friendly software implementation accompanies this article, and examples are given showing its use.