In an era of U.S. energy abundance, the persistently high energy bills paid by low-income households is troubling. After decades of weatherization and bill-payment programs, low-income households still spend a higher percent of their income on electricity and gas bills than any other income group. Their energy burden is not declining, and it remains persistently high in particular geographies such as the South, rural America, and minority communities.

Circular economy (CE) as a new model of economic development promotes the maximum reuse/recycling of materials, goods and components in order to decrease waste generation to the largest possible extent. It aims to innovate the entire chain of production, consumption, distribution and recovery of materials and energy according to a cradle to cradle vision.

The economics of energy efficiency programmes have been subject to considerable academic debate lasting well over three decades now. In this paper, we contribute to this debate by reviewing the costs and benefits of a specific type of policy+ instrument that recently gained significant traction in Europe – Energy Efficiency Obligations - EEOs. Following the introduction of the EU Energy Efficiency Directive in 2012 the number of EEOs in Europe has grown from five schemes to now 16 EEOs in operation or planned across the EU.