Energy efficiency is often seen as a tool for reducing energy consumption and generating cost savings rather than for producing additional goods or improving the level of services, such as increasing a company’s manufacturing output or increasing quantity, quality, and continuity of water supply.

This research report discusses the importance of recognizing such benefits from energy efficiency in low and middle-income countries. It further discusses how the additional utility resulting from the so-called “rebound effect” can be valued as economic benefit.

The research report presents an example of an economic analysis for a brownfield project, in which existing air-conditioning units are replaced by more efficient ones, and for a greenfield project, in which new air-conditioning units are installed in yet unconditioned space.