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Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables: Comment

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  • Dermot Gately
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    Abstract

    In an earlier article in this Journal, Hausman estimated the implicit discount rate used by air conditioner buyers in the tradeoff between initial cost and energy usage. Similar estimates for refrigerators yield discount rates from 45 percent to 300 percent. This raises questions about consumer and producer behavior and weakens certain criticisms of efficiency standards.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 11 (1980)
    Issue (Month): 1 (Spring)
    Pages: 373-374

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    Handle: RePEc:rje:bellje:v:11:y:1980:i:spring:p:373-374

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