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Title: Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency

Abstract

This report reviews current perspectives on market barriers to energy efficiency. Ratepayer-funded utility energy-efficiency programs are likely to change in scope, size, and nature as the deregulation process proceeds; the authors research focuses on understanding to what extent some form of future intervention may be warranted and how they might judge the success of particular interventions, especially those funded by ratepayers. They find that challenges to the existence of market barriers have, for the most part, failed to provide a testable alternative explanation for evidence suggesting that there is a substantial ``efficiency gap`` between a consumer`s actual investments in energy efficiency and those that appear to be in the consumer`s own interest. They then suggest that differences of opinion about the appropriateness of public policies stem not from disputes about whether market barriers exist, but from different perceptions of the magnitude of the barriers, and the efficacy and (possibly unintended) consequences of policies designed to overcome them. They conclude that there are compelling justifications for future energy-efficiency policies. Nevertheless, in order to succeed, they must be based on a sound understanding of the market problems they seek to correct and a realistic assessment of their likely efficacy. This understanding canmore » only emerge from detailed investigations of the current operation of individual markets.« less

Authors:
;  [1]
  1. Lawrence Berkeley National Lab., CA (United States). Energy and Environment Div.
Publication Date:
Research Org.:
Lawrence Berkeley Lab., CA (United States)
Sponsoring Org.:
USDOE, Washington, DC (United States)
OSTI Identifier:
270751
Report Number(s):
LBL-38059
ON: DE96013119; TRN: AHC29617%%83
DOE Contract Number:  
AC03-76SF00098
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: Mar 1996
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING AND POLICY; RESIDENTIAL SECTOR; ENERGY EFFICIENCY; COMMERCIAL SECTOR; LOAD MANAGEMENT; ECONOMICS

Citation Formats

Golove, W H, and Eto, J H. Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency. United States: N. p., 1996. Web. doi:10.2172/270751.
Golove, W H, & Eto, J H. Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency. United States. doi:10.2172/270751.
Golove, W H, and Eto, J H. Fri . "Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency". United States. doi:10.2172/270751. https://www.osti.gov/servlets/purl/270751.
@article{osti_270751,
title = {Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency},
author = {Golove, W H and Eto, J H},
abstractNote = {This report reviews current perspectives on market barriers to energy efficiency. Ratepayer-funded utility energy-efficiency programs are likely to change in scope, size, and nature as the deregulation process proceeds; the authors research focuses on understanding to what extent some form of future intervention may be warranted and how they might judge the success of particular interventions, especially those funded by ratepayers. They find that challenges to the existence of market barriers have, for the most part, failed to provide a testable alternative explanation for evidence suggesting that there is a substantial ``efficiency gap`` between a consumer`s actual investments in energy efficiency and those that appear to be in the consumer`s own interest. They then suggest that differences of opinion about the appropriateness of public policies stem not from disputes about whether market barriers exist, but from different perceptions of the magnitude of the barriers, and the efficacy and (possibly unintended) consequences of policies designed to overcome them. They conclude that there are compelling justifications for future energy-efficiency policies. Nevertheless, in order to succeed, they must be based on a sound understanding of the market problems they seek to correct and a realistic assessment of their likely efficacy. This understanding can only emerge from detailed investigations of the current operation of individual markets.},
doi = {10.2172/270751},
journal = {},
number = ,
volume = ,
place = {United States},
year = {1996},
month = {3}
}