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Cited by 142Energy, Environment, and Transportation PoliciesEnergy Efficiency and ManagementClimate Change Policy and Economics

Energy Efficiency Economics and Policy

Open access
Gillingham, Kenneth, Newell, Richard, Palmer, Karen·2009·National Bureau of Economic Research
DOI 10.3386/w15031
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Abstract

Energy efficiency and conservation are considered key means for reducing greenhouse gas emissions and achieving other energy policy goals, but associated market behavior and policy responses have engendered debates in the economic literature.We review economic concepts underlying consumer decision making in energy efficiency and conservation and examine related empirical literature.In particular, we provide an economic perspective on the range of market barriers, market failures, and behavioral failures that have been cited in the energy efficiency context.We assess the extent to which these conditions provide a motivation for policy intervention in energy-using product markets, including an examination of the evidence on policy effectiveness and cost.Although theory and empirical evidence suggests there is potential for welfare-enhancing energy efficiency policies, many open questions remain, particularly relating to the extent of some key market and behavioral failures.

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Cites

105 of 105 references verified0 citation errors · 0 not checkable

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  • The contribution of rebound effects to energy consumption is relatively insignificant.

    “At the other end of the spectrum, some researchers argue that the contribution of rebound e ects to energy consumption is relatively insignificant, e.g., [71-74].”

    From Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing? (2020) · cites this paper as [71]

    Section 5.1 (page not provided) says some evidence suggests rebound effects may be numerically small for energy-efficiency standards. That is narrower than a general claim about their contribution to energy consumption, and the paper describes a clothes-washer rebound effect as small but “not insignificant.” (LLM, conf=0.87)

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Research works printed but not linked: 4

  1. Griliches Z. 1995. R&D and productivity: econometric results and measurement issues. In Handbook of the Economics of Innovation and Technical Change, ed. P Stoneman, pp. 52- 71. Oxford: Blackwell
  2. List J, Price M. 2009. What do behavioral and neural economics have to offer environmental and resource economics? Annu. Rev. Resour. Econ. 1: In press
  3. Sanstad AH, Howarth RB. 1994. Consumer rationality and energy efficiency. Presented at Proc. Summer Study Energy Effic. Build., Berkeley, CA
  4. Stern P, ed. 1985. Energy Efficiency in Buildings: Behavioral Issues. Washington, DC: Natl. Acad. Press

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Authors
Gillingham, K., Newell, R., & Palmer, K.
Affiliations
National Bureau of Economic Research (US)
ORCID
Venue
National Bureau of Economic Research
Publisher
National Bureau of Economic Research
Published
2009-06
DOI
10.3386/w15031
OpenAlex
W4205709862
Cited by
142
References
105
Citations by year
2026: 1 · 2025: 3 · 2024: 3 · 2023: 2 · 2022: 4 · 2021: 6 · 2020: 6 · 2019: 9 · 2018: 10 · 2017: 13 · 2016: 10 · 2015: 12 · 2014: 17 · 2013: 11 · 2012: 17
Type
report
Language
en
Open access
Locations
National Bureau of Economic Research (publishedVersion)
Funders
  • U.S. Environmental Protection Agency
  • Resources for the Future
  • Exelon Corporation
Topics
  • Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
  • Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy Efficiency and Management
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Climate Change Policy and Economics
Keywords
energy efficiency, energy conservation, energy efficiency policy, market failure, market barriers, purchase decision, policy effectiveness, policy costs, welfare effects, greenhouse gas emissions reduction

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