Chu, Leon; Sappington, David - In: Journal of Regulatory Economics 43 (2013) 3, pp. 229-247
We examine the design of regulatory policy to induce electric utilities to deliver the surplus-maximizing level of energy efficiency services, <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$e^{*}$$</EquationSource> </InlineEquation>. The rebound effect (whereby increased energy efficiency stimulates the demand for energy) typically renders revenue decoupling insufficient...</equationsource></inlineequation>