research

t has long been recognized that consumers fail to minimize the total costs of their energy-consuming investments due to a range of market and non-market based failures. This has become known as the ‘Energy Efficiency Gap’. This presentation will discuss behavioural economics insights relating to the energy efficiency gap. In addition, there is currently a large knowledge gap in terms of understanding how consumers make decisions which involve an energy consumption component, which factors are salient in consumers’ decisions, the relative importance of these factors and how these factors change by consumer group and product type.