Demand-side management (DSM) policy evaluations, including energy efficiency and demand response, primarily focus on ex-ante appraisals or ex-post evaluations of impacts, such as energy savings, carbon savings and implementation costs. However, there is a knowledge gap in understanding the mechanisms behind the success and failure of demand-side policies. The paper presents the results of a…
Tag: Energy Efficiency Policy
Minimum Energy Efficiency Standards for Appliances: Old and New Economic Rationales
We revisit Hausman and Joskow (1982)’s economic rationales for appliance minimum energy efficiency standards. In addition to the four market failures they argued could justify appliance standards – energy prices below marginal social cost, consumers underestimating energy prices, consumer discount rates above social discount rates, and principal-agent problems – we discuss two additional market failures…