Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Lighting

Building Envelope

Central HVAC System

Distributed Generation

Demand Response

Commissioning

Procurement Policy

Water Use

Education

Energy Efficiency in Telecommuting

Resources and Appendices

Lessons Learned

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