This study analyzes the benefits of increased “direct use” of natural gas as a cost-effective mechanism to assist the nation in achieving two key goals: (1) increase the nation’s full fuel cycle energy efficiency; and (2) reduce national greenhouse gas (GHG) emissions. Objectives of this study were to:

• Assess end use efficiency, national CO2 emission reductions, primary energy savings, and consumer cost savings through encouraging direct use of natural gas to displace less efficient practices by creating economic incentives for equipment and educating consumers to gain immediate benefits, and providing new technologies through R&D investments for sustainable long term benefits.
• Compare the merits of increased direct gas use relative to other options to meet national energy efficiency and CO2 emission reduction goals. In particular, compare the relative merits of providing a comparable level of subsidies to direct use of natural gas for space and water heating versus electric end-use resistance heating and water heating technologies.