Energy efficiency is a tough sell, even when it is “free”

Increasing energy efficiency is good for both the environment and for consumers, as it leads to lower energy bills. But despite the benefits, why do many households not pursue such improvements? In a new study, Meredith Fowlie and co-authors ran a large field experiment to encourage eligible households to adopt free energy efficiency measures, and found that despite this encouragement, only a relatively small number of households took up the efficiency retrofit. She argues that for many the non-monetary costs incurred to implement an efficiency retrofit are significant and can be prohibitive.