Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Energy efficiency subsidies, additionality and incentive compatibility under hidden information
Authors: Shen, Peiyao
Betz, Regina
Yong, Soo Keong
et. al: Yes
DOI: 10.1007/s12053-018-9745-2
Published in: Energy Efficiency
Volume(Issue): 12
Issue: 6
Pages: 1429
Pages to: 1442
Issue Date: 9-Nov-2018
Publisher / Ed. Institution: Springer
ISSN: 1570-646X
1570-6478
Language: English
Subjects: Additionality; Energy efficiency policy; Energy efficiency subsidy; Hidden information
Subject (DDC): 333.7: Land, recreational areas and energy
Abstract: This paper examines the ‘additionality’ of energy savings in energy efficiency subsidy programs. ‘Additionality’ refers to the energy savings caused by actions beyond what would have occurred in the absence of the policy program. We characterise energy consumers’ strategic response to the subsidies in a formal adverse selection model and show how the subsidy program may fail to satisfy the additionality criterion. This occurs when energy consumers, who partake in the program, have different preferences for energy efficiency technologies that are unobservable. To resolve this, we propose an incentive compatible solution within the subsidy program that can mitigate the non-additionality problem and improve the effectiveness of the scheme.
URI: https://digitalcollection.zhaw.ch/handle/11475/18404
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Energy and Environment (CEE)
Appears in Collections:Publikationen School of Management and Law

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