Economics of Energy Conservation: A Case Study

Herath Gunatilake () and Dhammika Padmakanthi
Additional contact information
Herath Gunatilake: Asian Development Bank
Dhammika Padmakanthi: Saga University

No 131, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Global energy security relies heavily on exhaustible fossil fuels, whose use contributes significantly to global environmental problems. The recent unprecedented rise in oil prices and the threat of global warming highlight the urgent need for solutions to the energy and environment problem. Shifting to clean renewable energy sources—the long-term solution—has been slow despite efforts of the global community since the 1970s. Demand side management (DSM) is part of the solution to the energy crisis. Among DSM measures, energy conservation has greater potential in developing countries. This paper examines the financial and economic feasibility of adoption of an energy-conserving technology in the household sector in Sri Lanka. Results show that the adoption of this energy-conserving technology is financially profitable and economically viable. Systematic incorporation of environmental benefits further strengthens the case for energy conservation. The paper also discusses policy measures to solve low voluntary adoption, affordability issues, and information failures related to energy conservation.

Keywords: adoption; demand side management; energy conservation; energy crisis; financial feasibility (search for similar items in EconPapers)
JEL-codes: O13 Q42 Q54 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008-10-01
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.adb.org/publications/economics-energy-conservation-case-study Full text (text/html)

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:ris:adbewp:0131

Access Statistics for this paper

More papers in ADB Economics Working Paper Series from Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines. Contact information at EDIRC.
Bibliographic data for series maintained by Orlee Velarde ().