Measuring the Energy Savings from Home Improvement Investments: Evidence from Monthly Billing Data / Gilbert E. Metcalf, Kevin A. Hassett.

Format:

Book

Author/Creator:

Metcalf, Gilbert E.

Contributor:

National Bureau of Economic Research.

Hassett, Kevin A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6074.

NBER working paper series no. w6074

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Measuring the Energy Savings from Home Improvement Investments

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

An important factor driving energy policy over the past two decades has been the Energy Paradox,' the perception that consumers apply unreasonably high hurdle rates to energy saving investments. We explore one possible explanation for this apparent puzzle: that realized returns fall short of the returns promised by engineers and product manufacturers. Using a unique data set, we find that the realized return to attic insulation is statistically significant, but the median estimate (12.3 percent) is close to a discount rate for this investment implied by a CAPM analysis. We conclude that the case for the Energy Paradox is weaker than has previously been believed.

Notes:

Print version record

June 1997.