Measuring the Energy Savings from Home Improvement Investments: Evidence from Monthly Billing Data
AbstractAn important factor driving energy policy over the past two decades has been the Energy Paradox,' the perception that consumers apply unreasonably high hurdle rates to energy saving investments. We explore one possible explanation for this apparent puzzle: that realized returns fall short of the returns promised by engineers and product manufacturers. Using a unique data set, we find that the realized return to attic insulation is statistically significant, but the median estimate (12.3 percent) is close to a discount rate for this investment implied by a CAPM analysis. We conclude that the case for the Energy Paradox is weaker than has previously been believed.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6074.
Date of creation: Jun 1997
Date of revision:
Publication status: published as Review of Economics and Statistics, Vol. 81, no. 3 (1999): 516-528.
Note: PE EEE
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Other versions of this item:
- Gilbert E. Metcalf & Kevin A. Hassett, 1999. "Measuring The Energy Savings From Home Improvement Investments: Evidence From Monthly Billing Data," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 516-528, August.
- Kevin A. Hassett & Gilbert E. Metcalf, 1997. "Measuring the Energy Savings from Home Improvements Investments: Evidence from Monthly Billing Data," Discussion Papers Series, Department of Economics, Tufts University, Department of Economics, Tufts University 9701, Department of Economics, Tufts University.
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Energy Efficiency in the South and the Need for Micro Data
by Matthew E. Kahn in Environmental and Urban Economics on 2010-04-13 14:28:00
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