Economics of the Energy Efficiency Gap

Xiao-Bing Zhang is an Associate Professor of Applied Economics at the Department of Technology, Management and Economics, Technical University of Denmark. His research focuses on the intersection of energy economics, industrial organization, and behavioral responses to climate and energy policies.Ying Zheng is an Assistant Professor of Economics at the School of Applied Economics, Renmin University of China. His research centers on the industrial organization of energy markets, focusing on micro-level energy consumption and production behaviors.Chang Su is a graduate student at the Department of Economics, Colorado State University. Her research focuses on energy and environmental economics, using both reduced-form and structural methods.

“This book offers a careful and well-structured examination of the energy efficiency gap, combining conceptual analysis, empirical evidence, and policy discussion. It will interest researchers in energy and environmental economics as well as policymakers concerned with efficiency policy.” — Thomas Sterner, Professor of Environmental Economics, University of Gothenburg“This book shows that the energy efficiency gap is not only a technological or engineering problem. It is also about how consumers make decisions, how institutions shape those decisions, and how policy can align private behavior with broader social objectives.” — Signe Krarup, Head of Division, Climate and Energy Policy, Technical University of Denmark

• Part I: Introduction and Foundations 1. Introduction: Understanding the Energy Efficiency Gap 2. Defining and Measuring the Energy Efficiency Gap Part II: Theoretical Perspectives 3. Market and Behavioral Failures in Energy Efficiency 4. Policy Instruments and Institutional Design across Countries Part III: Recent Empirical Evidence 5. Overview of Empirical Methods for Studying the Energy Efficiency Gap 6. Principal-Agent Problem and the Adoption of Energy-Efficient Air Conditioners in China 7. Implicit Discount Rates and the Energy Efficiency Gap in China’s Air Conditioner Market 8. Consumer Valuation of Energy Costs in the Nordic Electric Vehicle Market 9. Residential Solar PV Adoption in the United States: Market Patterns, Policy Incentives, and Adoption Frictions 10. Understanding the Barriers to Energy Efficiency Adoption through Machine Learning: A Perspective from Consumer Reviews Part IV: New Frontiers in Energy Efficiency Gap Research and Practice 11. Recent Advances in Understanding and Closing the Energy Efficiency Gap in Practice 12. The Role of Innovation and Digitalization Part V: Policy Implications and the Road Ahead 13. Closing the Energy Efficiency Gap: Policy Roadmaps 14. Energy Efficiency in the Context of Net-Zero Transitions 15. Main Findings of the Book