EMF OP 41: Been Top Down So Long It Looks Like Bottom Up

While technologists emphasizesub-optimal choices by individuals and organizations, many economistshave ignored behavior exhibiting technical inefficiency. This paperselectively discusses efforts by some economists to identify andmeasure technical inefficiency. As applied to the energy efficiency“gap”, “bottom up” economics would seek to measure significantdepartures from best-practice technology, distinguish betweeninefficiency that is more (less) wasteful of energy than other inputs,and focus on developing testable hypotheses about technicalinefficiency. Support for widespread intervention in energy usedecisions may not necessarily follow from such an inquiry.