Abstract
This paper develops the theoretical underpinnings of conservation "supply " curves (CSCs), and in doing so uncovers several problems with current procedures for their construction. The CSC is shown to be derivable from a production isoquant, and not to be a true supply curve. The traditional algorithm for constructing a CSC from discrete measures is shown to be suboptimal, contrary to prior claims. Omitting conservation measuresfrom consideration can lead to systematic, excessive conservation. The CSC concept is extended from constant-service to constant-utility measures, and an improved approximation is suggested for the cost of conserved energy (CCE) of measures that cause rebound. The appendix provides a formula for CCE that is simple yet more general than the one currently in use, but shows that even with this generalization, CSCs cannot be constructed for a world with fluctuating energy prices.
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