 On consumer incentives for energy-efficient durablesNathan Chan and Isla Globus-Harris Journal of Environmental Economics and Management, 2023, vol. 119, issue C Abstract: Environmental policies often regulate energy-using durable goods rather than targeting externalities directly. How should such indirect policies be set? In this paper, we model the impact of efficiency incentives (EIs) on consumer behavior and analyze the normative implications of these policies in settings with internalities and externalities. We elucidate how the conditionally-optimal EI depends upon key empirical values and we also demonstrate how EIs can be paired with auxiliary policies to achieve optimality across various settings. Our analysis pinpoints the importance of the rebound effect in determining the net impact of the EI on externalities. Thus, our theoretical exposition provides concrete guidance for policy makers and program managers seeking to implement such policies. We further elucidate these theoretical insights through two empirical examples pertaining to air conditioner and refrigerator replacements. Keywords: Energy efficiency; Energy policy; Rebound effect; Environmental taxes and subsidies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:119:y:2023:i:c:s0095069623000311 DOI: 10.1016/j.jeem.2023.102813 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
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