Is there an energy paradox in fuel economy? A note on the role of consumer heterogeneity and sorting bias

Antonio Bento (), Shanjun Li and Kevin Roth

Economics Letters, 2012, vol. 115, issue 1, 44-48

Abstract: From the previous literature, it can be found that consumers tend to undervalue discounted future energy costs in their purchase decisions for energy-using durables. We show that this finding could, in part, result from ignoring consumer heterogeneity in empirical analyses as opposed to true undervaluation.

Keywords: Energy paradox; Fuel economy; Consumer heterogeneity (search for similar items in EconPapers)
JEL-codes: L91 Q48 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Related works:
Working Paper: Is There an Energy Paradox in Fuel Economy? A Note on the Role of Consumer Heterogeneity and Sorting Bias (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:1:p:44-48

DOI: 10.1016/j.econlet.2011.09.034

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