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Mind the Gap: Quantifying Principal-Agent Problems in Energy Efficiency

Sources:

International Energy Agency

Authors:

Philippine de T’Serclaes

Nigel Jollands

Date:

1 January 2007

This study seeks to quantify the magnitude of the effect of market barriers on energy use and efficiency. Significant cost-effective energy efficiency potential is wasted because market barriers prevent countries from achieving optimal levels. Market barriers take many forms, from inadequate access to capital, isolation from price signals, information asymmetry and split incentives.