IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v16y1995i4p109-137.html
   My bibliography  Save this article

The Economics of Conserved-Energy "Supply" Curves

Author

Listed:
  • Steven E. Stoft

Abstract

This paper develops the theoretical underpinnings of conservation "supply " curves (CSCs), and in doing so uncovers several problems with current procedures for their construction. The CSC is shown to be derivable from a production isoquant, and not to be a true supply curve. The traditional algorithm for constructing a CSC from discrete measures is shown to be suboptimal, contrary to prior claims. Omitting conservation measuresfrom consideration can lead to systematic, excessive conservation. The CSC concept is extended from constant-service to constant-utility measures, and an improved approximation is suggested for the cost of conserved energy (CCE) of measures that cause rebound. The appendix provides a formula for CCE that is simple yet more general than the one currently in use, but shows that even with this generalization, CSCs cannot be constructed for a world with fluctuating energy prices.

Suggested Citation

  • Steven E. Stoft, 1995. "The Economics of Conserved-Energy "Supply" Curves," The Energy Journal, , vol. 16(4), pages 109-137, October.
    • Handle: RePEc:sae:enejou:v:16:y:1995:i:4:p:109-137
    DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No4-5
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol16-No4-5
    Download Restriction: no
    File URL: https://libkey.io/10.5547/ISSN0195-6574-EJ-Vol16-No4-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Blumstein, Carl & Stoft, Steven E, 1995. "Technical efficiency, production functions and conservation supply curves," Energy Policy, Elsevier, vol. 23(9), pages 765-768, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Willeme, Peter, 2003. "A statistical approach to conservation supply curves," Energy Economics, Elsevier, vol. 25(5), pages 553-564, September.
    2. Singhal, Puja & Pahle, Michael & Kalkuhl, Matthias & Levesque, Antoine & Sommer, Stephan & Berneiser, Jessica, 2022. "Beyond good faith: Why evidence-based policy is necessary to decarbonize buildings cost-effectively in Germany," Energy Policy, Elsevier, vol. 169(C).
    3. Saunders, Harry D., 2000. "A view from the macro side: rebound, backfire, and Khazzoom-Brookes," Energy Policy, Elsevier, vol. 28(6-7), pages 439-449, June.
    4. Casillas, Christian E. & Kammen, Daniel M., 2011. "The delivery of low-cost, low-carbon rural energy services," Energy Policy, Elsevier, vol. 39(8), pages 4520-4528, August.
    5. Lutsey, Nicholas P., 2008. "Prioritizing Climate Change Mitigation Alternatives: Comparing Transportation Technologies to Options in Other Sectors," Institute of Transportation Studies, Working Paper Series qt5rd41433, Institute of Transportation Studies, UC Davis.
    6. Boyd, Gale A. & Lee, Jonathan M., 2019. "Measuring plant level energy efficiency and technical change in the U.S. metal-based durable manufacturing sector using stochastic frontier analysis," Energy Economics, Elsevier, vol. 81(C), pages 159-174.
    7. Lin, Boqiang & Xu, Lin, 2015. "Energy conservation of electrolytic aluminum industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 676-686.
    8. Koopmans, Carl C. & te Velde, Dirk Willem, 2001. "Bridging the energy efficiency gap: using bottom-up information in a top-down energy demand model," Energy Economics, Elsevier, vol. 23(1), pages 57-75, January.
    9. 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.
    10. Lin, Boqiang & Zhang, Guoliang, 2013. "Estimates of electricity saving potential in Chinese nonferrous metals industry," Energy Policy, Elsevier, vol. 60(C), pages 558-568.
    11. Gale Boyd & Matt Doolin, 2020. "The Energy Efficiency Gap and Energy Price Responsiveness in Food Processing," Working Papers 20-18, Center for Economic Studies, U.S. Census Bureau.
    12. Nick Eyre, 1997. "Barriers to Energy Efficiency: More Than Just Market Failure," Energy & Environment, , vol. 8(1), pages 25-43, March.
    13. Levihn, Fabian, 2016. "On the problem of optimizing through least cost per unit, when costs are negative: Implications for cost curves and the definition of economic efficiency," Energy, Elsevier, vol. 114(C), pages 1155-1163.
    14. Hochman, Gal & Timilsina, Govinda R., 2017. "Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis," Energy Economics, Elsevier, vol. 63(C), pages 22-30.
    15. Saunders, Harry D. & Roy, Joyashree & Azevedo, Inês M.L. & Chakravarty, Debalina & Dasgupta, Shyamasree & De La Rue Du Can, Stephane & Druckman, Angela & Fouquet, Roger & Grubb, Michael & Lin, Boqiang, 2021. "Energy efficiency: what has research delivered in the last 40 years?," LSE Research Online Documents on Economics 114344, London School of Economics and Political Science, LSE Library.
    16. Lin, Boqiang & Wu, Ya & Zhang, Li, 2011. "Estimates of the potential for energy conservation in the Chinese steel industry," Energy Policy, Elsevier, vol. 39(6), pages 3680-3689, June.
    17. Franz Fuerst & Dimitra Kavarnou & Ramandeep Singh & Hassan Adan, 2020. "Determinants of energy consumption and exposure to energy price risk: a UK study [Determinanten des Energieverbrauchs und Energiepreisrisiko: Eine Studie aus Großbritannien]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 6(1), pages 65-80, April.
    18. Meng, F.Y. & Zhou, D.Q. & Zhou, P. & Bai, Y., 2014. "Sectoral comparison of electricity-saving potentials in China: An analysis based on provincial input–output tables," Energy, Elsevier, vol. 72(C), pages 772-782.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:16:y:1995:i:4:p:109-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.