“It is becoming increasingly clear that the apparent energy efficiency gap has multiple explanations whose relative contributions differ across groups of energy users and types of energy uses.”
Why don’t people invest in seemingly attractive energy efficiency improvements? It turns out that there are many explanations, ranging from market failures to inaccurate engineering estimates to systematic behavioral biases in decision-making. Understanding these biases may hold the key to solving the “energy efficiency paradox.”
Kenneth Gillingham and Karen Palmer are the authors of “Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence,” from Review of Environmental Economics and Policy, which you can read free online.
Gif via giphy.com