@article {jaffe_energy_1994, title = {The Energy Paradox and the Diffusion of Conservation Technology}, journal = {Resource and Energy Economics}, volume = {16}, year = {1994}, note = {A-13}, month = {may}, pages = {91{\textendash}122}, abstract = {We develop a framework for thinking about the {\textquoteright}paradox{\textquoteright} of very gradual diffusion of apparently cost-effective energy-conservation technologies. Our analysis provides some keys to understanding why this technology-diffusion process i.s gradual, and focuses attention on the factors that cause this to be the case, including those associated with potential market failures - information problems, principal/agent slippage, and unobserved costs - and those explanations that do not represent market failures - private information costs, high discount rates, and heterogeneity among potential adopters. Additionally, our analysis indicates how alternative policy instruments - both economic incentives and direct regulations can hasten the diffusion of energy-conserving technologies.}, keywords = {033, 617-495-1635, 617-495-1820, cons, corresponding author, energy efficiency, fax, harvard university and faculty, j e l classification, jaffe is an associate, lvation, professor of economics at, q48, Research, technology diffusion, tel}, doi = {10.1016/0928-7655(94)90001-9}, url = {http://linkinghub.elsevier.com/retrieve/pii/0928765594900019}, author = {Jaffe, Adam B. and Robert N. Stavins} }