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Studieshaveshownthatmanyconsumersandbusinessesfailtoinvestinenergyefficiencyimprovementsdespiteseeminglyamplefinancialincentivestodoso–theso-‐calledenergyefficiencygap.Attemptstoexplainthisgapoftenfocusonsearchingcosts,informationfrictionsandbehavioralfactors.UsingdataonNorwegianelectricitypricesandGooglesearchesforheatpumps,Isuggestthattheinherentlyspikeynatureofmanyderegulatedelectricitymarkets–oftenseenasasignofinefficiency–hasastrongandsignificantpositiveeffectonsearchingforinformationonenergyefficiencygoods.Iattempttoidentifytheinformational/behavioraleffectbyusinganovelmethodofmeasuringspikiness:decomposingthepriceseriesintoarangeofLoesssmoothedseriesanddeviationsfromthesecurves

The Silver Lining of Price Spikes: How Electricity Price Spikes Can Help Overcome the Energy Efficiency Gap