IDEAS home Printed from https://ideas.repec.org/p/bfi/wpaper/bfi-2015-01.html
   My bibliography  Save this paper

Are the Non-Monetary Costs of Energy Efficiency Investments Large? Understanding Low Take-up of a Free Energy Efficiency Program

Author

Listed:
  • Meredith Fowlie

    () (University of California, Berkeley)

  • Michael Greenstone

    () (University of Chicago)

  • Catherine Wolfram

    () (University of California, Berkeley)

Abstract

We document very low take†up of an energy efficiency program that is widely believed to be privately beneficial. Program participants receive a substantial home “weatherization†retrofit; all installation and equipment costs are covered by the program. Less than one percent of presumptively eligible households take up the program in the control group. This rate increased only modestly after we took extraordinary efforts to inform households †via multiple channels †about the sizeable benefits and zero monetary costs. These findings are consistent with high non†monetary costs associated with program participation and/or energy efficiency investments.Â

Suggested Citation

  • Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2015. "Are the Non-Monetary Costs of Energy Efficiency Investments Large? Understanding Low Take-up of a Free Energy Efficiency Program," Working Papers BFI-2015-01, Becker Friedman Institute for Research In Economics.
  • Handle: RePEc:bfi:wpaper:bfi-2015-01
    as

    Download full text from publisher

    File URL: https://econresearch.uchicago.edu/sites/econresearch.uchicago.edu/files/BFI-2015-01_0.pdf
    File Function: First version, 2015
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:oup:qjecon:v:133:y:2018:i:3:p:1597-1644. is not listed on IDEAS
    2. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1597-1644.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:enepol:v:128:y:2019:i:c:p:607-615 is not listed on IDEAS
    2. Christian A. L. Hilber & Charles Palmer & Edward W. Pinchbeck, 2017. "The Energy Costs of Historic Preservation," SERC Discussion Papers 0217, Spatial Economics Research Centre, LSE.
    3. Palmer, Karen & Walls, Margaret & O'Keeffe, Lucy, "undated". "Putting Information into Action: What Explains Follow-up on Home Energy Audits?," Discussion Papers dp-15-34, Resources For the Future.
    4. repec:eee:pubeco:v:172:y:2019:i:c:p:151-173 is not listed on IDEAS
    5. Ramos, A. & Gago, A. & Labandeira, X. & Linares, P., 2015. "The role of information for energy efficiency in the residential sector," Energy Economics, Elsevier, vol. 52(S1), pages 17-29.
    6. List, John A. & Metcalfe, Robert D. & Price, Michael K. & Rundhammer, Florian, 2017. "Harnessing Policy Complementarities to Conserve Energy: Evidence from a Natural Field Experiment," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258139, Agricultural and Applied Economics Association.
    7. repec:eee:eneeco:v:69:y:2018:i:c:p:204-212 is not listed on IDEAS
    8. repec:eee:eneeco:v:69:y:2018:i:c:p:59-70 is not listed on IDEAS
    9. Alberini, Anna & Ščasný, Milan & Bigano, Andrea, 2018. "Policy- v. individual heterogeneity in the benefits of climate change mitigation: Evidence from a stated-preference survey," Energy Policy, Elsevier, vol. 121(C), pages 565-575.
    10. repec:eee:jeeman:v:90:y:2018:i:c:p:303-316 is not listed on IDEAS
    11. repec:eee:jeeman:v:88:y:2018:i:c:p:283-299 is not listed on IDEAS
    12. Lanot, Gauthier & Vesterberg, Mattias, 2017. "An empirical model of the decision to switch between electricity price contracts," Umeå Economic Studies 951, Umeå University, Department of Economics.
    13. Bruno Lanz & Evert Reins, 2019. "Asymmetric information on the market for energy efficiency: Insights from the credence goods literature," IRENE Working Papers 19-03, IRENE Institute of Economic Research.
    14. repec:eee:jeeman:v:92:y:2018:i:c:p:194-221 is not listed on IDEAS
    15. Frondel, Manuel & Kussel, Gerhard & Sommer, Stephan, 2018. "Heterogeneity in the price response of residential electricity demand: A dynamic approach for Germany," Ruhr Economic Papers 793, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. repec:eee:enepol:v:111:y:2017:i:c:p:414-426 is not listed on IDEAS
    17. Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2018. "The Light and the Heat: Productivity Co-benefits of Energy-saving Technology," NBER Working Papers 24314, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    energy; information economics;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfi:wpaper:bfi-2015-01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Toni Shears). General contact details of provider: http://edirc.repec.org/data/mfichus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.