Abstract
Evaluations of energy efficiency programs reveal that realized savings consistently fall short of projections. We decompose this “perfor-mance wedge” using data from the Illinois Home Weatherization Assistance Program (IHWAP) and a machine learning-based event study research de-sign. We find that bias in engineering models can account for up to 41% of the wedge, primarily from overestimated savings in wall insulation. Hetero-geneity in workmanship can also account for a large fraction (43%) of the wedge, while the rebound effect can explain only 6%. We find substantial heterogeneity in energy-related benefits from IHWAP projects, suggesting opportunities for better targeting of investments.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 798-817 |
| Number of pages | 20 |
| Journal | Review of Economics and Statistics |
| Volume | 105 |
| Issue number | 4 |
| DOIs | |
| State | Published - Jul 2023 |
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics