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Title: Minimum energy efficiency standards for appliances: Old and new economic rationales

In this study, 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, or principal agent problems--we discuss two additional market failures that are relevant and potentially economically important in this context: market power and innovation market failures. We highlight puzzles uncovered by recent empirical results, and suggest directions future research should take to better understand the normative implications of appliance standards.
Authors:
 [1] ;  [2]
  1. Univ. of Maryland, College Park, MD (United States)
  2. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Energy Analysis & Environmental Impacts Division
Publication Date:
Report Number(s):
LBNL-1006327
Journal ID: ISSN 2160-5882; ir:1006327
Type:
Accepted Manuscript
Journal Name:
Economics of Energy & Environmental Policy
Additional Journal Information:
Journal Volume: 5; Journal Issue: 2; Journal ID: ISSN 2160-5882
Publisher:
International Association for Energy Economics
Research Org:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Building Technologies Office (EE-5B)
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
OSTI Identifier:
1344786

Houde, Sebastien, and Spurlock, C. Anna. Minimum energy efficiency standards for appliances: Old and new economic rationales. United States: N. p., Web. doi:10.5547/2160-5890.5.2.shou.
Houde, Sebastien, & Spurlock, C. Anna. Minimum energy efficiency standards for appliances: Old and new economic rationales. United States. doi:10.5547/2160-5890.5.2.shou.
Houde, Sebastien, and Spurlock, C. Anna. 2016. "Minimum energy efficiency standards for appliances: Old and new economic rationales". United States. doi:10.5547/2160-5890.5.2.shou. https://www.osti.gov/servlets/purl/1344786.
@article{osti_1344786,
title = {Minimum energy efficiency standards for appliances: Old and new economic rationales},
author = {Houde, Sebastien and Spurlock, C. Anna},
abstractNote = {In this study, 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, or principal agent problems--we discuss two additional market failures that are relevant and potentially economically important in this context: market power and innovation market failures. We highlight puzzles uncovered by recent empirical results, and suggest directions future research should take to better understand the normative implications of appliance standards.},
doi = {10.5547/2160-5890.5.2.shou},
journal = {Economics of Energy & Environmental Policy},
number = 2,
volume = 5,
place = {United States},
year = {2016},
month = {9}
}