Essays on the economics of water and energy conservation

This dissertation consists of three papers examining water and energy conservation policy. The first paper investigates the effectiveness of the federal plumbing fixture efficiency standards by using data on household plumbing fixture flow rates and usage rates to estimate a model of plumbing fixture usage and simulate the impact that a fully binding set of standards would have on water demand. I find that previous studies significantly overstated the water conservation potential of the standards. The second paper examines the effectiveness of the Energy Star appliance labeling program. In that paper I find some evidence that the labeling program has been effective at reducing the energy intensity of dishwashers and clothes washers but not for refrigerators and air conditioners. I provide a framework for improving future analysis of the Energy Star labeling program by showing how revisions in label criteria can be exploited as a quasi-experiment to identify the effect of the program. The third paper reviews the literature on demand side management programs with a focus on empirical investigations of the rebound effect and the free rider problem. Based on that review, I provide recommendations for adjusting ex ante estimates of DSM program cost effectiveness.