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Tag: Minimum Energy Efficiency Standards

Minimum Energy Efficiency Standards for Appliances: Old and New Economic Rationales

Posted on February 4, 2026 by

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…

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