Lifting the Cap: Estimating the Economic Impacts of Energy Efficiency Investments in Pennsylvania

This paper analyzes the job-creation impacts of increased energy efficiency investments by electric distribution utilities in the Commonwealth of Pennsylvania. Under current Pennsylvania law, efficiency investments are artificially capped, limiting energy savings and associated economic benefits. We use input-output modeling to evaluate the economic impacts of lifting that investment cap, allowing electricity savings to rise 1.2% over the period 2021–2025. We find that unconstrained investments could create more than 30,000 jobs in Pennsylvania, a 50% increase compared to a scenario where a cap constrains them.

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