Catherine Wolfram’s research while affiliated with Massachusetts Institute of Technology and other places

We study household decisions to acquire energy-using assets in the presence of rising incomes. We develop a theoretical framework to characterize the effect of income growth on asset purchases when consumers face credit constraints. We use large and plausibly exogenous shocks to household income generated by the conditional-cash-transfer program in Mexico, Oportunidades, to show that asset acquisition is nonlinear, depends, as predicted in the presence of credit constraints, on the pace of income growth, and both effects are economically large among beneficiaries. Our results may help explain important worldwide trends in the relationship between energy use and income growth.

In Sub-Saharan Africa, there are active debates about whether increases in energy access should be driven by investments in electric grid infrastructure or small-scale "home solar" systems (e.g., solar lanterns and solar home systems). We summarize the results of a household electrical appliance survey and describe how households in rural Kenya differ in terms of appliance ownership and aspirations. Our data suggest that home solar is not a substitute for grid power. Furthermore, the environmental advantages of home solar are likely to be relatively small in countries like Kenya, where grid power is primarily derived from non-fossil fuel sources.

Researchers and professional evaluators are increasingly turning to randomized field experiments to evaluate energy efficiency programs and policies. This article provides a brief overview of several experimental methods and discusses their application to energy efficiency programs. We highlight experimental designs, such as randomized encouragement and recruit-and-deny, that are particularly well suited for situations where participation cannot be enforced. The article then discusses several implementation issues that can arise and characterizes applications that are a good fit for a randomized experiment. We also address the most common objections to field experiments, and share the best practices to consider when designing and implementing a field experiment in this space.

Great strides have been made over the past century in our ability to harness energy sources, leading to profound transformations — both good and bad — in society. Looking at the energy system of today, it is clear that meeting the energy needs of the world now and in the years to come requires the concerted efforts of many different actors across a range of technologies and approaches. In this Feature, ten leading experts in energy research share their vision of what challenges their respective fields need to address in the coming decades. The issues being faced are diverse and multifaceted, from the search for better materials for fuels, to the design of energy policy and markets for the developing world. However, a common theme emerges: changes to adapt and improve our energy system are greatly needed. By improving our mutual understanding of the issues faced by each area of energy research, these changes can happen more smoothly, efficiently and rapidly.

In Sub-Saharan Africa, 600 million people live without electricity. Despite ambitions of governments and donors to invest in rural electrification, decisions about how to extend electricity access are being made in the absence of rigorous evidence. In this paper, we present high-resolution spatial data on electrification rates in rural Kenya in order to quantify and visualize energy poverty in a novel way. Using our dataset of 20,000 geo-tagged structures in Western Kenya, we provide descriptive evidence that electrification rates remain very low despite significant investments in nearby grid infrastructure. This pattern holds across time and for both poor and relatively well-off households and businesses. We argue that if governments wish to leverage existing infrastructure and economies of scale, subsidies and new approaches to financing connections are necessary.

We document very low take-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 1 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 sizable benefits and zero monetary costs. These findings are consistent with high non-monetary costs associated with program participation and/or energy efficiency investments.

Conventional wisdom suggests that energy efficiency (EE) policies are beneficial because they induce investments that pay for themselves and lead to emissions reductions. However, this belief is primarily based on projections from engineering models. This paper reports on the results of an experimental evaluation of the nation’s largest residential EE program conducted on a sample of more than 30,000 households. The findings suggest that the upfront investment costs are about twice the actual energy savings. Further, the model-projected savings are roughly 2.5 times the actual savings. While this might be attributed to the “rebound” effect – when demand for energy end uses increases as a result of greater efficiency – the paper fails to find evidence of significantly higher indoor temperatures at weatherized homes. Even when accounting for the broader societal benefits of energy efficiency investments, the costs still substantially outweigh the benefits; the average rate of return is approximately -9.5% annually.

We document very low take-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 1 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 sizable benefits and zero monetary costs. These findings are consistent with high non-monetary costs associated with program participation and/or energy efficiency investments.

In June, the Obama Administration unveiled its proposal for a Clean Power Plan, which it estimates would reduce carbon dioxide (CO2) emissions from existing U.S. power plants 30% below 2005 levels by 2030 (see the chart). Power plant emissions have declined substantially since 2005, so the plan is seeking reductions of about 18% from current levels. Electricity generation accounts for about 40% of U.S. CO2 emissions.