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Blind spots in policy analysis: What economics doesn't say about energy use
Author(s) -
Stern Paul C.
Publication year - 1986
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/pam.4050050202
Subject(s) - investment (military) , economics , economic analysis , energy (signal processing) , blind spot , limit (mathematics) , behavioral economics , management science , positive economics , computer science , microeconomics , artificial intelligence , political science , mathematical analysis , statistics , mathematics , politics , agricultural economics , law
This article describes the difficulties of reducing analysis of energy use to an application of economic theory. It shows how economic concepts of behavior direct attention selectively to some important determinants of consumer behavior and away from others; how available economic accounts of short‐term change in energy use, investment in energy efficiency, and the dynamics of investment limit understanding and narrow analysts' vision; how promising policy options are overlooked as a result; and how concepts and knowledge from the noneconomic behavioral sciences can compensate. Two strategies are discussed for improving analysis. Using economic theory to guide the improvement of existing models can help, conceptual blind spots will remain. A problem‐oriented approach drawing on concepts and methods from across the behavioral sciences can avoid the blind spots, but cannot be systematic. Analysis can be improved by using both approaches in concert; some implications of a combined strategy are sketched.