The energy paradox and the diffusion of conservation technology

A conceptual framework is developed to help explain the 'paradox' of the very gradual diffusion of what appears to be cost-effective energy-conservation technologies. The study seeks to determine the factors that affect the rate of adoption of these technologies and the impact of economic incentives and conventional regulations in promoting such adoption. The analysis indicates why the technology-diffusion process is gradual and how alternative policy instruments can accelerate it.