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

摘要: Despite several decades of government policies to promote energy efficiency, estimates the costs and benefits such remain controversial. At heart controversy is whether there an "energy efficiency gap," whereby consumers firms fail make seemingly positive net present value saving investments. High implicit discount rates, undervaluation future fuel savings, negative cost measures have all been discussed as evidence existence a gap. We review explanations for gap, including reasons why size gap may be overstated, neoclassical recent from behavioral economics that has potential help us understand could exist. Our raises fundamental questions about traditional welfare analysis, yet we find alternatives offered in literature far ready use policy analysis. Nevertheless, offer suggestions policymakers economic research.