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Economic Implications of Mandated Efficiency in Standards for Household Appliances

Abstract:
In the discussion of energy conservation, a great deal of attention has focused on mandated efficiency standards for cars and energy-using household appliances. (In this article, I will use the term "appliance" in a generic sense to cover household durables). Unfortunately, the estimates of energy savings predicted to result from these mandated standards are derived mechanically.' When mandated standards raise the appliance efficiency by 1 percent, demand is predicted to drop by 1 percent; when they raise efficiency by 2 percent, demand is predicted to drop by 2 percent; and so on. Examples of such results are found in reports by the Department of Energy (1979a, 1980) and by the Staff of the California Energy Commission (1979) on energy demand in California in the coming two decades.

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Energy Specializations: Energy Efficiency; Electricity – Distributed Generation

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q40: Energy: General

Keywords: Mandated efficiency standards, Household appliances, Energy policy

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No4-2

Published in Volume 1, Number 4 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

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