Work

What changes energy consumption? Prices and public pressures

Year: 2008

Type: article

Abstract: Policymakers often seek to limit energy prices following market shocks, and instead issue public appeals to reduce demand. This article presents new evidence on how price changes and conservation appeals affect energy consumption, using household‐level data from California's energy crisis during 2000 and 2001. The evidence indicates that when policymakers cap energy prices following market shocks, they preclude substantial—and quite rapid—reductions in energy use. The data also reveal that conservation appeals and informational programs can produce sustained reductions in energy demand.

Source: The RAND Journal of Economics

DOI: 10.1111/j.1756-2171.2008.00032.x

Authors: Peter C. Reiss, Matthew W. White

Institutions: National Bureau of Economic Research, Stanford University, University of Pennsylvania

Language: English

Topic: Energy, Environment, and Transportation Policies

Subfield: Renewable Energy, Sustainability and the Environment

Field: Energy

Domain: Physical Sciences

SDG: Affordable and clean energy

Open Access status: bronze

Funders: University of Pennsylvania, California Public Utilities Commission