Despite the potential energy savings and economic benefits associated with compact fluorescent light bulbs, their adoption by the residential sector has been limited to date. In this paper, we present a theoretical model that focuses on the agents' ability to perceive the correct cost of lighting and on the role of environmental attitudes as key determinants of the adoption decision. We use original data from Ireland to test our theoretical predictions. Our results emphasize the importance of education, information and environmental awareness in the adoption decision.

The point of departure of our analysis is the seminal work of Rodgers (1979) on the absolute and relative income hypotheses. We find that substituting the governance index for the Gini index is statistically the preferred regression model. Our findings lend support to the argument that governance matters. Further investigation provides evidence for two types of threshold effects: in terms of both absolute income and governance. For those countries below a threshold, absolute income is the most significant determinant of health, while for those above it, governance matters the most. The regression analyses are conducted on a sample of 112 states, which is representative of a wide range of absolute income and governance levels

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