May 2 019 Working Paper 013.2019

May 2 019 Working Paper 013.2019 The Adverse Effect of Energy- Efficiency Policy Achim Voss Future Energy Program Series Editor: Manfred Hafner The Adverse Effect of Energy-Efficiency Policy By Achim Voss, University of Hamburg, Department of Economics Summary I analyze energy-efficiency policy as a prescription of a minimum-efficiency standard for energy- using household goods like cars, building. [...] The wedge between the induced expenditures and the private optimum is analyzed as a deadweight loss. [...] Keywords: Energy Efficiency, Rebound Effects, Household Heterogeneity, Extensive Margin, Gruenspecht Effect, Investment, Theory of Environmental Policy JEL Classification: Q41, Q48, D15 A previous version of this paper had the title “Energy-Efficiency Policy and its Effects at the Intensive and at the Extensive Investment Margins with Heterogeneous Households”. [...] The wedge between the induced expenditures and the private optimum is analyzed as a deadweight loss. [...] A previous version of this paper had the title “Energy-Efficiency Policy and its Effects at the Intensive and at the Extensive Investment Margins with Heterogenous Households”.