Energy efficiency and conservation are considered key means for reducing greenhouse gas
emissions and achieving other energy policy goals, but associated market behavior and
policy responses have engendered debates in the economic literature. We review economic
concepts underlying consumer decision making in energy efficiency and conservation and
examine related empirical literature. In particular, we provide an economic perspective on
the range of market barriers, market failures, and behavioral failures that have been cited in …

Energy efficiency and conservation are major factors in the reduction of the environmental
impact of the energy sector, particularly with regard to climate change. Energy efficiency also
contributes to reducing external dependence and vulnerabilities in the energy domain. In
this paper, we discuss the factors that influence energy efficiency and conservation
decisions, and the most appropriate policies for their promotion. Although not all public
policies seem justified, we argue that specific policies for promoting energy conservation …