TY  - JOUR
AU  - Gillingham,Kenneth
AU  - Newell,Richard G.
AU  - Palmer,Karen
TI  - Energy Efficiency Economics and Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15031
PY  - 2009
Y2  - June 2009
UR  - http://www.nber.org/papers/w15031
L1  - http://www.nber.org/papers/w15031.pdf
N1  - Author contact info:
Kenneth Gillingham
Stanford University
P.O. Box 16336
Stanford, California 94309
Tel: 6503536578
E-Mail: kenneth.gillingham@yale.edu

Richard G. Newell
Nicholas School of the Environment
Duke University
Box 90227
Durham, NC 27708
Tel: 919/681-8663
Fax: 919/684-5833
E-Mail: richard.newell@duke.edu

Karen Palmer
Resources for the Future
1616 P Street, NW
Washington, DC 20036
E-Mail: palmer@rff.org
AB  - 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.
ER  -