What's driving energy efficient appliance label awareness and purchase propensity?

The EU appliance energy consumption labeling scheme is a key component of efforts to increase the diffusion of energy-efficient household appliances. In this paper, the determinants of consumer knowledge of the energy label for household appliances and the choice of class-A energy-efficient appliances are jointly estimated using data from a large survey of more than 20,000 German households. The results for five major appliances suggest that lack of knowledge of the energy label can generate considerable bias in both estimates of rates of uptake of class-A appliances and in estimates of the underlying determinants of choice of class-A appliance. Simulations of the choice to purchase a class-A appliance, given knowledge of the labeling framework, reveal that residence characteristics and, in several cases, regional electricity prices strongly increase the propensity to purchase a class-A appliance, but socio-economic characteristics have surprisingly little impact on appliance energy-class choice.     

美国能源之星计划最新动态分析

能源之星计划是美国用能产品节能管理措施的重要组成部分,对世界各国的节能法规和标准产生了重要影响,在一定程度上,产品获得能源之星认证已成为进入发达国家市场的一个通行证。能源之星计划目前覆盖商业设备、家用电器、办公室设备、照明产品、房屋建材产品5大类60类终端耗能产品。2009年,新颁布了电视机和LED灯等5类产品标准,包括洗碗机、洗衣机、计算机、显示器等13类产品的标准陆续生效,这些新的标准将对我国相关产品出口到美国造成一定影响。生产商获取能源之星认证需要3个步骤:确定产品是否已符合或者能够符合能源之星标准;制造商成为能源之星合作伙伴;履行能源之星合作伙伴的义务。美国能源之星计划与我国能效标准、欧盟EuP/ErP指令三者相比,能源之星的要求较其他两者更严,规定的技术项目也更多。相比之下,我国能效标准水平较低,仍存在提升的空间,同时在实施过程中尚存在法律法规不够健全、行业自律性差、公众能效意识较低等一些现实障碍。     

Status and future directions of the Energy Star program

In 1992 the US Environmental Protection Agency (EPA) introduced Energy Star^®, a voluntary labeling program designed to identify and promote energy-efficient products, in order to reduce carbon dioxide emissions. Since then, the EPA, now in partnership with the US Department of Energy (DOE), has expanded the program to cover nearly the entire buildings sector, spanning new homes, commercial buildings, residential heating and cooling equipment, major appliances, office equipment, commercial and residential lighting, and home electronics. This paper is based on our experience since 1993 in providing technical support to the Energy Star program. We provide a snapshot of the Energy Star program in the year 2000, including a general overview of the program, its accomplishments, and the possibilities for future development.     

建立我国能效信息标识制度的有关问题

国际经验表明,对家用电器和设备实施能效信息标识制度能有效的遏制能源消耗增长势头。鉴于能源安全和环境保护的双重压力,我国将建立和实施适应市场经济体制的能效标识制度。本文对建立能效标识制度的相关问题进行了探讨,并提出建议,即针对量大面广、节能潜力的大的产品,以发布目录的形式,实施强制性的“可比较的”能效等级标识;实施模式为“企业自我说明+强化市场监管”;产品能效等级的划分即要考虑市场上产品能效的分布情况,也要考虑实施监管和消费者的甄别能力等因素;标识样式应反映文化因素和消费者的能效意识水平,并进行市场调查;应加强能效标识符合性的能力建设,以推动制度的顺利实施。     

Factors influencing willingness-to-pay for the ENERGY STAR label

In the United States, nearly 17% of greenhouse gas emissions come from residential energy use. Increases in energy efficiency for the residential sector can generate significant energy savings and emissions reductions. Consumer labels, such as the US Environmental Protection Agency's ENERGY STAR, promote conservation by providing consumers with information on energy usage for household appliances. This study examines how the ENERGY STAR label affects consumer preferences for refrigerators. The results of an online survey of a national sample of adults suggest that consumers are, on average, willing to pay an extra $249.82–$349.30 for a refrigerator that has been awarded the ENERGY STAR label. Furthermore, the results provide evidence that respondent willingness-to-pay was motivated by both private (energy cost savings) and public (environmental) benefits.     

Energy savings assessment for digital-to-analog converter boxes

The Digital Television (DTV) Converter Box Coupon Program was administered by the U.S. government to subsidize purchases of digital-to-analog converter boxes, with up to two $40 coupons for each eligible household. In order to qualify as Coupon Eligible Converter Boxes (CECBs), these devices had to meet a number of minimum performance specifications, including energy efficiency standards. The Energy Star Program also established voluntary energy efficiency specifications that are more stringent than the CECB requirements. In this study, we measured the power and energy consumptions for a sample of 12 CECBs (including 6 Energy Star labeled models) in-use in homes and estimated aggregate energy savings produced by the energy efficiency policies. Based on the 35 million coupons redeemed through the end of the program, our analysis indicates that between 2500 and 3700 GWh per year are saved as a result of the energy efficiency policies implemented on digital-to-analog converter boxes. The energy savings generated are equivalent to the annual electricity use of 280,000 average US homes.     

Appliance energy labels and consumer heterogeneity: A latent class approach based on a discrete choice experiment in China

Given the growing concerns about environmental protection, a focus on energy label behavior is of particular public interest, as labels can communicate to consumers the sustainability of products. Based on a discrete choice experiment, we measure consumers' awareness and attitudes regarding refrigerators and washing machines. A mixed logit model is specified to quantify the attributes consumers look for when choosing the two electrical appliances. In the latent class model, four classes are observed. The results of the study reveal that the energy label program in China is effective. However, consumers do not always choose the energy efficient appliances, and their failure to do so is often related to an energy efficiency gap. Interestingly, both the largest groups for the refrigerator (33.17%) and washing machine (36.6%) tend to prefer the two electrical appliances with the lowest price. Both are foreign brands, with low energy label and larger overall capacity. Consumers are also willing to pay more for an improved energy grade label on the refrigerator (731.16 yuan) than on the washing machine (424.76 yuan). Suggestions regarding how to increase the probability of consumers choosing energy efficient appliances are also given in this paper.     

Analysis of tax incentives for energy-efficient durables in the EU

Climate change is one of the most significant challenges faced by societies this century. Energy consumption is directly associated with CO₂ emissions and climate change. The European Commission has set out emission reduction targets that require a great deal of energy consumption savings in the next 10 years in European countries. This paper presents the results of an analysis of the potential cost-effectiveness of different policy options aimed to foster the production and consumption of energy-efficient appliances in different European countries. Our results suggest that incentives to promote the use of energy-efficient appliances can be cost-effective, but whether or not they are depends on the particular country and the options under consideration. From the cases considered, tax credits on boilers appear to be a cost-effective option in Denmark and Italy, while subsidies on CFLi bulbs in France and Poland are cost-effective in terms of €/ton of CO₂ abated. Comparing the subsidies against the energy tax options, we find that the subsidies are in most cases less cost-effective than the energy tax.     

Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan

This study examines how consumers select ecologically efficient water heaters in Japan. Energy conservation in household water heating is increasingly important for reducing an amount of CO₂ emission, because the share of water heating in household energy consumption is approximately 30%. Recently, Japanese households have widely used ecologically efficient electric heat pump water heaters (Eco Cute) or gas-fired water heaters (Eco Jozu). The total number of such efficient water heaters sold in Japan was more than 2.5 million at the end of 2008. This study investigates various factors and impacts of marketing strategy for promoting the appliances in Japan. We apply mixed and nested logit models to a disaggregated choice data on water heaters from 2004 to 2008. This study considers retail energy prices, a government financial support and marketing activities as important factors for appliance selection. In addition, we consider consumers' housing attributes such as floor space and age of building. This empirical study finds two business implications. One of the two implications is that an increase in an energy price may enhance a choice probability of Eco Cute and Eco Jozu because a price increase invites consumer's consciousness on energy conservation so that a cost reduction on energy consumption becomes essential in a use of the efficient appliances. The other implication is that marketing activities, especially by recommendations from sales representatives and/or housing suppliers, are important for consumer behaviors. The other important findings are discussed in this study. This business experience in Japan is useful to the other countries where ecologically efficient water heaters are not popular at the current moment.     

Energy efficiency, rebound effects and the environmental Kuznets Curve

Technological change is one factor used to justify the existence of an Environmental Kuznets Curve, and technological improvements have been argued to be a key factor in mitigating the impacts of economic growth on environmental quality. In this paper we use a CGE model of the Scottish economy to consider the factors influencing the impacts of one form of technological change–improvements in energy efficiency–on absolute levels of CO2 emissions, on the carbon intensity of the economy (CO2 emissions relative to real GDP), and the per capita EKC relationship. These factors include the elasticity of substitution between energy and non-energy inputs, responses in the labour market and the structure of the economy. Our results demonstrate the key role played by the general equilibrium price elasticity of demand for energy, and the relative influence of different factors on this parameter.     

Consumer stockpiling in response to the U.S. EISA “light bulb ban”

This study investigates consumer behavior in anticipation of the United States Energy Independence and Security Act (EISA) energy mandate that effectively banned production and import (not the sale) of incandescent light bulbs. We use the gradual implementation of U.S. EISA energy standards, where only 100-watt incandescent bulbs were initially banned, to estimate a series of difference-in-difference models that examine consumer behavior. Our results show that stockpiling in response to the EISA mandate resulted in a 96.9% increase in 100-watt incandescent bulbs sold per store per week. A back-of-the-envelope calculation shows stockpiling reduced private energy savings between $7 million and $21 million in Ohio and between $199 million and $589 million in the United States. Stockpiling also reduced social carbon cost savings between $56 million and $166 million across the United States.     

Energy labeling for electric fans in Malaysia

To reduce energy consumption in the residential sector, Malaysia Energy Commission is considering implementing energy labels for household electrical appliances including electric fans in 2005. The purpose of the energy labels is to provide the consumers a guideline to compare the size, features, price and efficiency of the appliance. This paper discusses the energy label for electric fans in this country based on Malaysian Standards developed by a technical committee that reviewed the performance of household electrical appliances. This study includes methodology for the calculation of the energy efficiency star rating and projected energy usage, performance requirements, details of the energy label and the requirements for the valid application in Malaysia. The label also can be adopted for other household electrical appliances with only slight modifications.     

Measurement and analysis of product energy efficiency to assist energy star criteria development: An example for desktop computers

The Energy Star labeling program contributes to reducing economic and environmental impacts. Although product-specific criteria for the label are developed by taking into account potential energy savings, more robust criteria need to be developed to minimize energy consumption (and consequential global warming potential (GWP)). The objectives of this study are: (i) to measure what we refer to as the technical and cost efficiencies of products with respect to the relative Energy Star criteria achievement rate and GWP, respectively; and (ii) to analyze the relationship between these efficiencies and product design features, using stochastic frontier analysis (SFA) and data envelopment analysis (DEA). As an example, these analyses are applied to data for desktop computers. The results indicate that desktop computer manufacturers currently achieve energy savings that exceed those required by the Energy Star label. The principal product design features affecting the efficiencies are primarily the efficiency and power capacity of the power supply and the number of cores in the central processing unit. This study can help the program develop more robust criteria that ultimately reduce GWP and can provide guidance to manufacturers to strategically improve energy efficiency.     

Decision-making in electrical appliance use in the home

This paper presents the results of a survey as well as an argument from the viewpoint of behavioral economics with the aim of clarifying how consumers make decisions about electrical appliance use in the home. A survey of consumers showed that most have little awareness of the energy efficiency of appliances, the price of the services produced by electrical appliances, or electricity rates. These findings indicate that price does not function as a signal in electricity consumption through electrical appliance use. Rather, we found that consumer decision-making in electricity consumption is dependent on the characteristics of the particular electrical appliances they use. Additionally, we argue that the payment system for home electricity consumption plays an important role in decision-making, causing biases due to aspects of human psychology discussed here in terms of satisficing and heuristics, payment decoupling, and budgeting. We conclude that decision-making about electrical appliance use and electricity consumption in the home is not always rational and is affected both by the particular characteristics of appliances and the payment system for electricity consumption along with human psychology.     

On the adoption of electricity as a domestic source by Mozambican households

In Mozambique, domestic energy is often composed of a mix of sources, primarily used for lighting and cooking, with biomass and kerosene as more common sources. Electrification programs, intended to connect new consumers countrywide, have not significantly contributed either to the intensification of electricity consumption or to the reduction of the use of biomass in households. The choice of energy source is dependent on price and on the capability of the household to invest in energy-consuming appliances. Based on the data from a household survey carried out in Mozambique during 2002/03, this paper analyzes the geographic differences in unit expenditures for domestic energy and finds evidence of an inverted energy ladder with prices of useful energy units. The data show that biomass sources are often more expensive per unit of useful energy than higher-grade sources, supporting arguments favoring electrification as a poverty alleviation strategy. In addition, this study estimates the likelihood of poor households transitioning from biomass to electricity consumption based on various factors. Results indicate that income is not a determining factor in the transition, but wealth and the level of the Primary Energy Consumption Share (PECS) are as important factors as the nature of the energy mix.     

Good things come in small packages: is there a common set of motivators for energy behaviour?

Household energy consumption can be curbed by individuals’ energy saving, yet despite many efforts, our energy consumption is not lowering. This study investigated the role of a common set of behavioural determinants for households’ intention to perform four energy-related behaviours: investing in PV cells, turning off apparatus on standby mode, showering less, and replacing old home appliances with new energy-efficient ones. Behavioural determinants—energy awareness, general energy knowledge, attitudes, subjective norms, perceived behavioural control, and moral norms—were assessed in a survey (N?=?83) among Swedish residents. Energy awareness was moderately correlated with energy knowledge, but not with respondents’ intentions to perform the behaviours, except for replacing home appliances. Moral norms were judged by respondents as important motivators and were a strong predictor to behavioural intentions to perform all four behaviours. Attitudes likewise were assessed as important motivators and were important predictors to all behavioural intentions except investing in PV cells, which was instead predicted by perceived behavioural control. Respondents’ assessment of beliefs underlying attitudes also differed for investing in PV cells; namely, beliefs about economic benefits were lower. Moreover, respondents felt less morally responsible for investing in PV cells. Concluding, we found no evidence that intentions to engage in four energy-saving behaviours are mediated by general energy knowledge or energy awareness. Determinants to each behaviour differed, where—surprisingly—investment in PV cells stood out as less motivated both by economic incentives and moral concerns, although moral norms were shared motivators across all four behaviours. We discuss different possible interpretations of these findings.     

Modelling of electricity savings in the Danish households sector: from the energy system to the end-user

In this paper, we examine the value of investing in energy-efficient household appliances from both an energy system and end-user perspectives. We consider a set of appliance categories constituting the majority of the electricity consumption in the private household sector, and focus on the stock of products which need to be replaced. First, we look at the energy system and investigate whether investing in improved energy efficiency can compete with the cost of electricity supply from existing or new power plants. To assess the analysis, Balmorel, a linear optimization model for the heat and power sectors, has been extended in order to endogenously determine the best possible investments in more efficient home appliances. Second, we propose a method to relate the optimal energy system solution to the end-user choices by incorporating consumer behaviour and electricity price addition due to taxes. The model is non-exclusively tested on the Danish energy system under different scenarios. Computational experiments show that several energy efficiency measures in the household sector should be regarded as valuable investments (e.g. an efficient lighting system) while others would require some form of support to become profitable. The analysis quantifies energy and economic savings from the consumer side and reveals the impacts on the Danish power system and surrounding countries. Compared to a business-as-usual energy scenario, the end-user attains net economic savings in the range of 30–40 EUR per year, and the system can benefit of an annual electricity demand reduction of 140–150 GWh. The paper enriches the existing literature about energy efficiency modelling in households, contributing with novel models, methods, and findings related to the Danish case.     

Conveyance,envy, and homeowner choice of appliances

Conveyance, i.e. the fact that an appliance purchased will be left in a dwelling when moving out, may lead homeowners to purchase appliances of lower quality or performance, because the extra costs are not entirely capitalized into the house sales price. Employing a discrete choice experiment with homeowners in the United States, this paper explores the effects of conveyance on homeowners' willingness-to-pay for various attributes of refrigerators. To account for the social nature of purchases when conveyance is likely to occur, it also tests the role of envy (elicited through an incentivized game). The findings provide evidence that conveyors are more likely than non-conveyors to purchase a smaller refrigerator, from a less well-known brand, and with lower customer ratings. In contrast, conveyance was not found to affect homeowners' choices when it comes to energy cost. In addition, envy was found to generally reinforce the negative effects of conveyance on homeowners' willingness-to-pay for several quality and performance attributes. While conveyance and its interaction with envy help explain why some homeowners choose certain quality/performance attributes of appliances, these factors do not appear to explain the energy efficiency paradox.     

Quantitative analysis of energy-efficiency strategy on CO2 emissions in the residential sector in Japan – Case study of Iwate prefecture

This study examines the economics of energy-efficiency strategies for reducing CO₂ emissions in the residential sector in Japan from the perspective of regional characteristics. For this study, the residential sector in Iwate prefecture was selected as representative of rural areas in Japan. In order to promote purchases of energy-efficient consumer appliances, the prefectural government is presumed to reimburse purchasers a part of the cost difference between energy efficient and conventional appliances. This paper begins with a discussion of the prefecture’s financial support for purchasers of energy efficient appliances and assumes that the payments come from prefectural government funds. This paper then looks at the effect of a carbon-tax refund on the reduction of CO₂ emissions. The results show that, if half of the households use energy-efficient appliances, then CO₂ emissions in the residential sector in the year 2020 will decreases from the BAU scenario, 0.726 Mt-C to 0.674 Mt-C. However, the Iwate prefectural government expends $105 million annually, which is 1.5% of the total tax revenue in the year 2003. The carbon-tax refund effectively encourages further reductions in CO₂ emissions. Under the $20/tC carbon tax, proposed by the Ministry of the Environment, the carbon-tax refund leads to a reduction in residential CO₂ emissions from 0.726 Mt-C to 0.712 Mt-C.