Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/194136
Authors: 
Houde, Sébastien
Myers, Erica
Year of Publication: 
2019
Series/Report no.: 
Economics Working Paper Series 19/313
Abstract: 
We estimate whether consumers respond to local energy costs when purchasing appliances. Using a dataset from an appliance retailer, we compare demand responsiveness to a measure of energy costs that varies with local energy prices versus purchase prices. We strongly reject that consumers are unresponsive to local energy costs under a wide range of assumptions. These findings run counter to the popular wisdom, which motivates energy standards, that energy costs are a shrouded attribute. Capital investments are an important channel for electricity demand response and may explain some of the large differences between short and long run electricity price elasticities
Subjects: 
inattention
shrouded attributes
energy efficiency gap
misperceptions
appliance efficiency standards
JEL: 
Q41
Q50
L15
D12
D83
Persistent Identifier of the first edition: 
Document Type: 
Working Paper
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