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Economic Implications of Mandated Efficiency in Standards for Household Appliances

J. Daniel Khazzoom

Year: 1980
Volume: Volume 1
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No4-2
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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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An Analysis of Department of Energy Residential Appliance Efficiency Standards

Raymond S. Hartman & MIT Energy Laboratory

Year: 1981
Volume: Volume 2
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No3-5
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Abstract:
Over the past several years, the Department of Energy (DOE) and its predecessor agencies have initiated an array of policies aimed at limiting domestic consumption of fossil fuels. Several policy initiatives, aimed at residential fossil-based energy conservation, have included residential appliance efficiency standards, the commercialization of residential applications of solar photovoltaic (PV) installations and solar thermal appliances, and the implementation of energy performance standards for buildings. Each of these programs alone will reduce residential fossil fuel consumption. However, it remains unclear how they interact. In this article I examine how two programs may interact. In particular, I assess how well appliance efficiency standards will reduce fuel consumption and whether a standards program will conflict with or complement the DOE's PV commercialization efforts.

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Will President Reagan's Energy Policy Lead Households to Conserve?

Eric S. Brown

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-5
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Abstract:
When energy was cheap and easily available, consumers' paid little attention to their energy use and bills, so after the supply disruptions of the1970s, they were poorly equipped to deal with the changes they faced in energy prices and availability. During the 1970s, the federal government undertook various programs of education and assistance, including dissemination of printed information, establishment of energy standards for federally financed homes, and tax credits for use of alternative energy sources.

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Notes - What Role Can Utilities Play in Energy Conservation Programs?

Irwin M. Stelzer

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-6
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Notes - OPEC and the Rest of the World Trade Equilibrium - A Clarifying Note

Gideon Fishelson

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-7
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Notes - Response to Besen and Johnson's Comment on "Economic Implications…"

J. Daniel Khazzoom

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-10
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Notes - Risk Analysis of Alternative Energy Sources

Daniel R. Kazmer

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-11
No Abstract

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Reply to "Risk Analysis of Alternative Energy Sources"

Miller B. Spangler

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-12
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Wood Energy Bibliography

n/a

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-13
No Abstract

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Notes - Economic Implications of Mandated Efficiency Standards for Household Appliances

Michael Einhorn

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-8
No Abstract

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Notes - Comment on "Economic Implications of Mandated Efficiency..."

Stanley M. Besen and Leland L. Johnson

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-9
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Notes - Sense and Nonsense About World Oil

M. A. Adelman

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-13
No Abstract

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Notes - A Comparison of the Costs and the Results in the On/Offshore Search for Oil and Gas

Jon A. Rasmussen and Michael J. Piette

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-11
No Abstract

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Notes - Public Willingness to Invest in Household Weatherization

Marvin E. Olsen and Christopher Cluett

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-12
No Abstract

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Notes - FEA Efficiency Standards and Energy Usage: Resolving Khazzoom vs Besen and Johnson

Michael Einhorn

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-14
No Abstract

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Notes - Two-Part Tariffs and the "Spiral of Impossibility" in the Market for Electricity

John T. Wenders

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-15
No Abstract

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Responses to Energy Efficiency Regulations

Frederick C. Bold

Year: 1987
Volume: Volume 8
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No2-8
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Abstract:
Despite all the thunder and commotion surrounding energy usage and regulation, there is little comprehensive and systematic theoretical analysis of some of the most common forms of energy usage regulation. These regulations can take a variety of forms such as quantity rationing, price controls, tax incentives, building codes, and efficiency standards. With respect to legislated efficiency standards, some progress is made in a series of articles appearing in The Energy Journal concerned with the effect of compulsory efficiency improvements on energy consumption. The first is J. Daniel Khazzoom's "Economic Implications of Mandated Efficiency in Standards for Household Appliances." This article is followed by comments and extensions by Michael Einhorn, by Stanley M. Besen with Leland J. Johnson, and by a response to Besen and Johnson by Khazzoom and Sanford Miller. A second article by Einhorn deals with the differences in the Khazzoom and Besen-Johnson approaches.

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The Incidence of Welfare Losses Due to Appliance Efficiency Standards

Mark F. Morss

Year: 1989
Volume: Volume 10
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No1-9
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Abstract:
The effect of appliance efficiency standards upon household energy consumption has recently occupied the attention of energy economists: Khazzoom (1987), Bold (1987), Lovins (1988), and Henly et al. (1988). This paper is concerned with the equally important question of the effects of such standards upon household welfare. It is shown that the households most likely to prefer less efficient appliances, and therefore to suffer welfare losses when standards are imposed, are those with low levels of appliance usage- This in conjunction with the results of empirical studies of appliance electricity demand makes it possible to characterize the affected households. An important result developed here is that the direction of given effects upon the demand for appliance efficiency may be deduced from the direction of the corresponding effects upon appliance electricity consumption.

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