Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Commissioning

On-the-Farm Energy Use

Lighting

Building Envelope

Central HVAC System

Boilers

Steam

Combined Heat and Power

Compressed Air

Refrigeration

Motors

Demand Response

Distributed Generation

Water Use

Best Practice Guide Glossary

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ECONOMIC EFFICIENCY Return to list of terms

A term that refers to the optimal production and consumption of goods and services. This generally occurs when prices of products and services reflect their marginal costs. Economic efficiency gains can be achieved through cost reduction, but it is better to think of the concept as actions that promote an increase in overall net value (which includes, but is not limited to, cost reductions).

Source: California Energy Commission