Heterogeneity in Energy Users
Another possible non-market-failure explanation for the energy efficiency gap is associated with the fact that even if a given technology is cost-effective on average, it will mostly likely not be for some individuals or firms.
If the relevant population is heterogeneous—with respect to variables such as the purchaser’s discount rate, the investment lifetime, the price of energy, the purchase price, and other costs— even an electricity technology that looks very good for the average user (more…)











