@article{Gerarden:202116,
      recid = {202116},
      author = {Gerarden, Todd D. and Newell, Richard G. and Stavins,  Robert N. and Stowe, Robert C.},
      title = {An Assessment of the Energy-Efficiency Gap and Its  Implications for Climate Change Policy},
      address = {2015-04-20},
      number = {824-2016-54864},
      series = {CCSD},
      pages = {35},
      month = {Apr},
      year = {2015},
      abstract = {Improving end-use energy efficiency—that is, the  energy-efficiency of individuals, households, and firms as  they consume energy—is often cited as an important element  in efforts to reduce greenhouse-gas (GHG) emissions.  Arguments for improving energy efficiency usually rely on  the idea that energy-efficient technologies will save end  users money over time and thereby provide low-cost or  no-cost options for reducing GHG emissions. However, some  research suggests that energy-efficient technologies appear  not to be adopted by consumers and businesses to the degree  that would seem justified, even on a purely financial  basis. We review in this paper the evidence for a range of  explanations for this apparent “energy-efficiency gap.” We  find most explanations are grounded in sound economic  theory, but the strength of empirical support for these  explanations varies widely. Retrospective program  evaluations suggest the cost of GHG abatement varies  considerably across different energy-efficiency investments  and can diverge substantially from the predictions of  prospective models. Findings from research on the  energy-efficiency gap could help policy makers generate  social and private benefits from accelerating the diffusion  of energy-efficient technologies—including reduction of GHG  emissions.},
      url = {http://ageconsearch.umn.edu/record/202116},
      doi = {https://doi.org/10.22004/ag.econ.202116},
}