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The optimal timing of energy-conserving investment-analysis and policy implications

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  • Ravid, S.Abraham

Abstract

In this paper, we assume that an energy-conserving technological invention has occurred. Given the cost of equipment replacement and future energy prices, the optimal investment time is calculated. Various assumptions about the nature of replacements, their costs, and the equipment available are made, and several replacement models are used. We next describe policy implications of the analysis and discuss subsidies for energy conservation and research and development policy. An application is presented for home-insulation in the North Central U.S.A.

Suggested Citation

  • Ravid, S.Abraham, 1980. "The optimal timing of energy-conserving investment-analysis and policy implications," Energy, Elsevier, vol. 5(3), pages 259-270.
    • Handle: RePEc:eee:energy:v:5:y:1980:i:3:p:259-270
    DOI: 10.1016/0360-5442(80)90012-2
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