BEEN TOP-DOWN SO LONG IT LOOKS LIKE BOTTOM UP TO ME

While technologists emphasize suboptimal choices by individuals and organizations, many economists have ignored behavior exhibiting technical inefficiency. This paper selectively discusses efforts by some economists to identify and measure technical inefficiency. As applied to the energy-efficiency 'gap', 'bottom-up' economics would seek to measure significant departures from best practice technology, distinguish between inefficiency that is more (less) wasteful of energy than other inputs, and focus on developing testable hypotheses about technical inefficiency. Support for widespread intervention in energy use decisions may not necessarily follow from such an inquiry.