Motivating energy suppliers to promote energy conservation |
| |
Authors: | Leon Yang Chu David E M Sappington |
| |
Institution: | 1. Marshall School of Business, University of Southern California, 3670 Trousdale Parkway, Los Angeles, CA, 90089, USA 2. Department of Economics, Warrington College of Business, University of Florida, Gainesville, FL, 32611-7140, USA
|
| |
Abstract: | We examine the design of regulatory policy to induce electric utilities to deliver the surplus-maximizing level of energy efficiency services, $e^{*}$ . The rebound effect (whereby increased energy efficiency stimulates the demand for energy) typically renders revenue decoupling insufficient in this regard. The additional financial incentive required to induce $e^{*}$ is shown to vary with such factors as the prevailing price of energy, the magnitude of the rebound effect, the extent of observable energy efficiency investments, and the utility’s objective. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|