September 20, 2012
Climate and Environment
Addressing Market Barriers to Energy Efficiency in Buildings: Working Paper 2012-10
August 23, 2012
A large share of total U.S. energy consumption—40 percent—occurs in homes and buildings. Homes and buildings are less energy efficient than they would be if people could assess the value of energy savings more easily and correctly, and if energy prices provided them with stronger incentives to do so. This paper identifies three reasons why people undervalue energy savings: misperceived energy prices, imperfect information about energy efficiency, and biased reasoning about energy savings. The paper then examines four types of policy options for addressing those underlying market imperfections: prices that reflect the social costs of energy use, financial incentives, energy-efficiency standards, and better information about energy efficiency.
Sep 2012 - CBO’s report assesses how the credits affect the relative cost of owning an electric vehicle, and how cost-effectively the credits reduce gasoline consumption and greenhouse gas emissions.