How Technological Potentials are Undermined by Economic and Behavioural Responses - The Treatment Effect of Endogenous Energy Efficiency Measures
Helena Meier and
No 2015-4, EWI Working Papers from Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)
Governments worldwide spend increasing amounts of money on policy schemes to reduce energy consumption and related carbon emissions. We investigate the actual treatment eﬀect of energy eﬃciency measures and therein compare actual demand responses to technological potentials. Based on a demand system analysis of household data and by approximating unobserved energy awareness, we ﬁnd economic and behavioural responses that counteract expected savings from energy eﬃciency. Results show strong rebound and even backﬁring eﬀects but also suggest heterogeneity of the eﬀectiveness driven by behavioural concepts, such as sunk cost fallacy or habit formation. Understanding these can contribute to target-oriented policy designs and increased eﬀectiveness and eﬃciency of policies.
Keywords: Policy evaluation; household demand; unobserved heterogeneity; energy eﬃciency (search for similar items in EconPapers)
JEL-codes: C21 D12 Q58 (search for similar items in EconPapers)
Pages: 38 pages
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://www.ewi.uni-koeln.de/cms/wp-content/upload ... gical_Potentials.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:ewikln:2015_004
Access Statistics for this paper
More papers in EWI Working Papers from Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI) Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Williams ().