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Transient and persistent energy efficiency in the US residential sector: evidence from household-level data

Additional information

Authors
Alberini A., Filippini M.
Type
Journal Article
Year
2018
Language
English
Abstract
In this paper, we measure the energy efficiency implicit in residential energy consumption using a panel dataset comprised of 40,246 observations from US households observed over 1997–2009. We fit a stochastic frontier model of the minimum input of energy needed to meet the level of energy services demanded by the household. This benchmarking exercise produces a transient and a persistent efficiency index for each household and each time period. We estimate that the US residential sector could save approximately 10% of its total energy consumption if it reduced persistent inefficiencies and 17% if it were possible to eliminate transient inefficiencies. These figures are in line with recent economy-wide assessments for the USA. Our results suggest that savings in energy use and associated emissions of greenhouse gases may benefit from both policy measures that attain short-run behavioral changes (e.g., nudges, social norms, display of real-time information about usage, and real-time pricing) as well measures aimed at the long run, such as energy-efficiency regulations, incentives on the purchase of high-efficiency equipment, and incentives towards a change of habits in the use of the equipment.
Journal
Energy Efficiency
Volume
11
Number
3
Start page number
589
End page number
601