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The RAND Journal of Economics· 2026Q1

The Incidence of Coarse Certification: Evidence From the ENERGY STAR Program

Sébastien Houde

Short summary

A structural econometric model of the U.S. appliance market, using ENERGY STAR as a case study, shows that coarse certifications can lead to excess firm "bunching" at certification thresholds and may crowd out quality.

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Field: Renewable Energy, Sustainability and the Environment

Renewable Energy, Sustainability and the EnvironmentEnergy