Are the Non-Monetary Costs of Energy Efficiency Investments Large? Understanding Low Take-up of a Free Energy Efficiency Program

We document very low takeâ€up of an energy efficiency program that is widely believed to be privately beneficial. Program participants receive a substantial home “weatherization†retrofit; all installation and equipment costs are covered by the program. Less than one percent of presumptively eligible households take up the program in the control group. This rate increased only modestly after we took extraordinary efforts to inform households †via multiple channels †about the sizeable benefits and zero monetary costs. These findings are consistent with high nonâ€monetary costs associated with program participation and/or energy efficiency investments.