What is the reason why they explain their results?

They explain their results based on uncertainty (about future prices) and information effects (the expectations of a subsidies program being started shortly).

How much of the energy demand in the US is impacted by this?

And it is a relevant matter, affecting around one third of the residential demand for energy in the US (Murtishaw and Sathaye, 2006).

What are some other problems which may arise from the use of standards?

Some other problems which may arise from the use of standards include their typical association to an increase in investment costs and a decrease in operation costs that, given the sunk character of the former, generates a large possibility for a rebound.

What is the main reason for the low energy efficiency gap?

Jaffe and Stavins (1994) show that these are slow processes and that this slowness (which in turn depends on the uncertainty and heterogeneity of consumers) explains part of the energy efficiency gap.

What is the main reason why Jaffe and Stavins (1995) found that investment?

In this sense, Jaffe and Stavins (1995) found that investment subsidies were three times more effective than an equivalent price increase – or, as the authors put it, that the impact of up-front technology costs was much greater than that of the longer term energy prices.

What is the way to decouple revenue from sales?

Here an interesting idea would be to decouple revenue from sales, only feasible under regulated frameworks – thus removing the negative incentive for utilities to carry out energy efficiency programs, since then these programs would not have an impact on their revenues.

Why did Newell et al (1999) show that when there are associated information programs?

In this sense, Newell et al (1999) showed that, when there are associated information programs, the impact of price instruments is higher because they increase elasticity.

What is the relevance of the market failures and barriers?

In sum, the relevance of the market failures and barriers already described depends on the sector considered (see e.g. their detailed description in IPCC, 2007) and of the consumer type.

What is the relevance of the problem for other investments?

as this problem arises for many other investments, the relevant question is not if this divergence is justified, but whether the social profitability of ECE measures exceeds that of alternative social investments.

What is the relationship between energy conservation and carbon emissions?

This relationship depicts energy conservation as the alternative with the largest potential and cost-effectiveness to mitigate CO2 emissions.

Open AccessJournal Article10.1111/J.1467-6419.2009.00609.X

Energy efficiency: economics and policy

Pedro Linares, +1 more

- 01 Jul 2010

- Journal of Economic Surveys

- Vol. 24, Iss: 3, pp 573-592

809

TL;DR: In this paper, the authors discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion, and argue that specific policies for promoting energy conservation may be required, preferably based on economic instruments or on the provision of information to consumers.

Abstract: Energy efficiency and conservation are major factors in the reduction of the environmental impact of the energy sector, particularly with regard to climate change. Energy efficiency also contributes to reducing external dependence and vulnerabilities in the energy domain. In this paper, we discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion. Although not all public policies seem justified, we argue that specific policies for promoting energy conservation may be required, preferably based on economic instruments or on the provision of information to consumers.

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Most frequently asked questions

1. What are the contributions mentioned in the paper "Energy efficiency: economics and policy" ?

In this paper the authors discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion.

2. Why are standards the popular choice for ECE?

Technological standards, usually translated into minimum energy efficiency requirements for energy equipments, have been the most popular choice for ECE, possibly because of their political attractiveness.

3. What is the key for the existence of all these benefits?

The key for the existence of all these benefits resides on the fact that people do not consume energy, but rather energy services: therefore, it may be possible to provide the same level of energy service with a lower consumption of energy.

4. What does the author argue about the inclusion of energy prices?

Richmond and Kaufmann (2006), for example, argue that the inclusion of energy prices explains the evolution of energy intensity in most countries, so that the dematerialization hypothesis should be rejected when prices are considered.

Table 1. Reasons that explain the energy efficiency paradox

Figure 1. Primary energy demand and CO2 emissions in the US. 1990-2007 (base 1990)

Table 2. Policy instruments to address the energy efficiency paradox

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- 19 Jul 2012

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References

•Posted Content

The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand

Dermot Gately, +1 more

- 01 Jan 2001

- Research Papers in Economics

TL;DR: In this paper, the effects on energy and oil demand of changes in income and oil prices, for 96 of the world's largest countries, in per-capita terms, were examined.

...read moreread less

291

Book Chapter•10.1016/B0-12-176480-X/00228-X

Economics of Energy Efficiency

Adam B. Jaffe

- 01 Jan 2004

TL;DR: In this paper, economic perspectives on the process of energy-saving technological change, the distinction between market failures and market barriers in energy-using product markets, and the important role that discounting plays in this area are discussed.

...read moreread less

288

•Journal Article•10.1016/0047-2727(94)01452-T

Energy tax credits and residential conservation investment: Evidence from panel data

Kevin A. Hassett, +1 more

- 01 Jun 1995

- Journal of Public Economics

TL;DR: In this article, the authors measure the impact of government tax policies to encourage residential conservation investment on the probability of making these investments using panel data on individual tax returns and variation in state tax policy.

...read moreread less

256

•Journal Article•10.1016/J.RESENEECO.2007.03.001

Explaining the declining energy intensity of the U.S. economy

Ian Sue Wing, +1 more

- 01 Jan 2008

- Resource and Energy Economics

TL;DR: In this paper, the authors reconcile conflicting explanations for the decline in U.S. energy intensity over the last 40 years of the 20th century by decomposing changes in the energy-GDP ratio into shifts in the structure of sectoral composition and adjustments in the efficiency of energy use within individual industries.

...read moreread less

231

Journal Article•10.1016/S0301-4215(99)00084-1

Is the energy intensity a less useful indicator than the carbon factor in the study of climate change

B.W. Ang

- 29 Dec 1999

- Energy Policy

TL;DR: In this paper, the authors show that the energy intensity (energy/GDP) varies over a wider range and has had a greater impact on energy-related carbon emissions than the carbon factor (carbon/energy).

...read moreread less

198

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Energy efficiency: economics and policy

Chat with Paper

AI Agents for this Paper

Most frequently asked questions

1. What are the contributions mentioned in the paper "Energy efficiency: economics and policy" ?

2. Why are standards the popular choice for ECE?

3. What is the key for the existence of all these benefits?

4. What does the author argue about the inclusion of energy prices?

5. What is the reason why they explain their results?

6. How much of the energy demand in the US is impacted by this?

7. What are some other problems which may arise from the use of standards?

8. What is the main reason for the low energy efficiency gap?

9. What is the main reason why Jaffe and Stavins (1995) found that investment?

10. What is the way to decouple revenue from sales?

11. Why did Newell et al (1999) show that when there are associated information programs?

12. What is the relevance of the market failures and barriers?

13. What is the relevance of the problem for other investments?

14. What is the relationship between energy conservation and carbon emissions?

Figures

Citations

Digitalization and energy consumption. Does ICT reduce energy demand

Is There an Energy Efficiency Gap

Information strategies and energy conservation behavior: A meta-analysis of experimental studies from 1975 to 2012

Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence

Combining hazard, exposure and social vulnerability to provide lessons for flood risk management

References

The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand

Economics of Energy Efficiency

Energy tax credits and residential conservation investment: Evidence from panel data

Explaining the declining energy intensity of the U.S. economy

Is the energy intensity a less useful indicator than the carbon factor in the study of climate change

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