Deconstructing the Energy-Efficiency Gap: Conceptual Frameworks and Evidence

Todd Gerarden, Richard Newell and Robert Stavins

American Economic Review, 2015, vol. 105, issue 5, 183-86

Abstract: Energy-efficient technologies offer considerable promise for reducing the financial costs and environmental damages associated with energy use, but these technologies appear not to be adopted to the degree that appears justified, even on a purely private basis. We present two complementary frameworks for understanding this so-called "energy paradox" or "energy efficiency gap." First, we build upon previous literature by dividing potential explanations for the energy efficiency gap into three categories: market failures, behavioral anomalies, and model and measurement errors. Second, we examine the elements of cost-minimizing energy efficiency decisions, the typical benchmark used in assessing the gap's magnitude.

JEL-codes: O31 Q41 Q51 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.p20151012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.p20151012 (application/pdf)
https://www.aeaweb.org/aer/ds/10505/P2015_1012_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:105:y:2015:i:5:p:183-86

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().