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Do energy prices influence investment in energy efficiency? Evidence from energy star appliances

Listed author(s):
  • Jacobsen, Grant D.

I examine whether electricity prices influence the likelihood that consumers purchase high efficiency appliances by using state-year panel data on electricity prices and the proportion of sales of new appliances that involve high efficiency “Energy Star” models. I find no evidence that electricity prices affect the propensity for consumers to choose high efficiency appliances. Point estimates are extremely small and precisely estimated. The findings suggest that price-based energy policies may be limited in the extent to which they increase investment in residential energy efficiency, which has been considered one of the lowest cost opportunities for reducing carbon emissions.

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File URL: http://www.sciencedirect.com/science/article/pii/S0095069615000753
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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 74 (2015)
Issue (Month): C ()
Pages: 94-106

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Handle: RePEc:eee:jeeman:v:74:y:2015:i:c:p:94-106
DOI: 10.1016/j.jeem.2015.09.004
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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