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Economic Implications of Mandated Efficiency in Standards for Household Appliances

J. Daniel Khazzoom

Year: 1980
Volume: Volume 1
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No4-2
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Abstract:
In the discussion of energy conservation, a great deal of attention has focused on mandated efficiency standards for cars and energy-using household appliances. (In this article, I will use the term "appliance" in a generic sense to cover household durables). Unfortunately, the estimates of energy savings predicted to result from these mandated standards are derived mechanically.' When mandated standards raise the appliance efficiency by 1 percent, demand is predicted to drop by 1 percent; when they raise efficiency by 2 percent, demand is predicted to drop by 2 percent; and so on. Examples of such results are found in reports by the Department of Energy (1979a, 1980) and by the Staff of the California Energy Commission (1979) on energy demand in California in the coming two decades.



The Dilemma of Economic Versus Statistical Models of Energy

J. Daniel Khazzoom

Year: 1981
Volume: Volume 2
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No3-10
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Abstract:
The recent surge of interest among energy planners in economic models' for predicting the energy outlook has coincided with a growing senseof disillusionment among many practicing econometricians about the forecasting performance of economic models (see, for example, Stekler, 1968).Many economists argue that the problem with economic models lies in the economic theories behind them. These theories analyze the impact of policy changes on the assumption that the structure will not change, when in fact what may happen is that the structure itself, and not just the variables ofinterest, may change as policy changes. What is needed is a theory that predicts how the structure will change in response to such policy changes.



Will President Reagan's Energy Policy Lead Households to Conserve?

Eric S. Brown

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-5
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Abstract:
When energy was cheap and easily available, consumers' paid little attention to their energy use and bills, so after the supply disruptions of the1970s, they were poorly equipped to deal with the changes they faced in energy prices and availability. During the 1970s, the federal government undertook various programs of education and assistance, including dissemination of printed information, establishment of energy standards for federally financed homes, and tax credits for use of alternative energy sources.









Notes - Risk Analysis of Alternative Energy Sources

Daniel R. Kazmer

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-11
No Abstract



Reply to "Risk Analysis of Alternative Energy Sources"

Miller B. Spangler

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-12
No Abstract



Wood Energy Bibliography

n/a

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-13
No Abstract





Notes - Comment on "Economic Implications of Mandated Efficiency..."

Stanley M. Besen and Leland L. Johnson

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-9
No Abstract



The Demand for Insulation-A Study in the Household Demand for Conservation

J. Daniel Khazzoom

Year: 1987
Volume: Volume 8
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No3-4
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Abstract:
This paper presents my effort to provide the means of estimating a major ingredient of the demand for conservation-namely, home insulation. A detailed account of the effort and its motivation can be found in Khazzoom (1984, 1986a). The demand relationships of this model provide one block (out of three) in a jointly determined system of demand relationships: demand for electricity, demand for insulation, and demand for efficient appliances. The study is pitched toward the service-area level. I estimated a model of the household demand for insulation in the Sacramento Municipal Utility District's (SMUD's) service area, which has a population of over 760,000.



Energy Saving Resulting from the Adoption of More Efficient Appliances

J. Daniel Khazzoom

Year: 1987
Volume: Volume 8
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No4-8
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Abstract:
In last November's IAEE meetings, Amory Lovins reported estimatesof energy saving that will result from the adoption of more efficient appliances. This note addresses three questions related to the subject.1. The realism of Lovins' estimate of energy saving.2. The way these estimates fare when juxtaposed against the price elasticity of demand used by Lovins.3. The light my recent empirical results shed on the magnitude of energy saving we can realistically expect.In the process, the note touches on the polar opposite policies that Lovins has been advocating.



Energy Savings from More Efficient Appliances: A Rejoinder

J. Daniel Khazzoom

Year: 1989
Volume: Volume 10
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No1-14
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Abstract:
In his article (Lovins, 1988) responding to my Note (Khazzoom, 1987), Amory Lovins makes a series of allegations. I find they contain precious little substance. Space limitations preclude a response to each one of Lovins' points, but I will address some of the specifics. The following overall observations convey perhaps in a nutshell some of the difficulties with the article that emerge from the discussion of the specifics below: (i) The article makes statements about facts, which are not supported by the evidence; (ii) The article holds contradictory positions and makes inconsistent statements, with little or no effort at probing into their implications; (iii) A depressing aspect of the article that the serious reader has to contend with is the lack of command of the basics of economics the article reveals. There is rattling with economic terminology and there are grand-sounding statements about economics, but it is not clear the author knows quite what they all mean. I turn to these below. But I would like to clarify the procedure 1 will be following. Lovins' article is substantially made up of quotes from the unpublished work by the National Resources Defense Council. In preparing the present rejoinder, I have made the assumption that since Lovins used the quotes to elaborate on points that he made (often in two lines or less), the statements he quoted say what he would have said, had he written the elaboration in his own words. I hope this clarification will spare any future counterarguments that Lovins did not make these statements, but only quoted them.



Fuel Efficiency and Automobile Safety: Single-Vehicle Highway Fatalities for Passenger Cars

J. Daniel Khazzoom

Year: 1994
Volume: Volume15
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No4-4
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Abstract:
This paper reports the results of an effort to shed some light on the relationship that might exist between enhanced standards and single-vehicle passenger car highway fatalities. Quantification of this relationship is not an easy task Not surprisingly, the literature on modeling the relationship between fuel economy and highway fatalities is very scant. Our analytic framework consists of two submodes: a corporate average fuel economy (CAFE) submodel and a single-vehicle highway fatalities submodel. Some of the variables that enter the CAFE relationship affect single vehicle fatalities, as well. The results of this study are not unequivocal in every respect. However, they indicate that enhanced standards and automobile safety need not be at odds with each other.A main message that emerges from this study is the need not to confuse car downsizing with downweighting. Quantitative studies of highway fatalities have mostly treated weight and size interchangeably, and have used only the weight variable in the fatalities equation to avoid dealing with multicollinearity. Such references as "size/weight' which lump size and weight together as if they were the same variable are not uncommon in the safety literature. Our study indicates that weight and size are not a proxy to each other, and that in single vehicle crashes they are likely to have opposite effects on safety. Men researchers choose to drop the size variable and include only the weight variable in the fatalities equation, the weight estimate may end up with a negative sign, not necessarily because weight has a beneficial effect on safety., but because the omitted size variable has a dominant beneficial effect on safety, which is picked up by the weight variable that appears in the equation.



Impact of Pay-at-the-Pump on Safety Through Enhanced Vehicle Fuel Efficiency

J. Daniel Khazzoom

Year: 1997
Volume: Volume18
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-5
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Abstract:
Pay-at-the-Pump (PATP) is a proposal for replacing the lump-sum payment of auto insurance by a system of surcharge on gasoline price. This study examines the main argument made against PATP-namely, that by stimulating the demand for fuel-efficient vehicles, PATP results in a drastic deterioration in highway safety. The study finds the evidence does not support this argument. Moreover, if as critics argue, PATP does indeed result in a substantially accelerated replacement of older vehicles with more fuel-efficient ones, the introduction of PATP may be expected to result in a substantially safer fleet of vehicles, as well.





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