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How price spikes can help overcome the energy efficiency gap

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  • Mauritzen, Johannes

Abstract

Using data on Google searches, I suggest that the spiky nature of electricity markets has a strong effect on searching for information on energy efficiency goods. I identify the informational effect by decomposing prices into smoothed and deviation components.

Suggested Citation

  • Mauritzen, Johannes, 2015. "How price spikes can help overcome the energy efficiency gap," Economics Letters, Elsevier, vol. 134(C), pages 114-117.
    • Handle: RePEc:eee:ecolet:v:134:y:2015:i:c:p:114-117
    DOI: 10.1016/j.econlet.2015.07.008
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    References listed on IDEAS

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    1. Kenneth Gillingham & Karen Palmer, 2014. "Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 18-38, January.
    2. Timothy J. Brennan, 2013. "Energy Efficiency Policy Puzzles," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    3. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    4. Gillingham, Kenneth & Palmer, Karen, 2013. "Bridging the Energy Efficiency Gap: Insights for Policy from Economic Theory and Empirical Analysis," RFF Working Paper Series dp-13-02, Resources for the Future.
    5. Timothy J. Brennan, 2013. "Energy Efficiency Policy Puzzles," The Energy Journal, , vol. 34(2), pages 1-26, April.
    6. Rafal Weron, 2006. "Modeling and Forecasting Electricity Loads and Prices: A Statistical Approach," HSC Books, Hugo Steinhaus Center, Wroclaw University of Science and Technology, number hsbook0601, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Wierzbowski, Michal & Filipiak, Izabela, 2017. "Enhanced operational reserve as a tool for development of optimal energy mix," Energy Policy, Elsevier, vol. 102(C), pages 602-615.

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    More about this item

    Keywords

    Energy efficiency; Deregulated electricity markets; Price spikes; Informational frictions;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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