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Analyzing price and efficiency dynamics of large appliances with the experience curve approach

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Author Info

  • Weiss, Martin
  • Patel, Martin K.
  • Junginger, Martin
  • Blok, Kornelis
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    Abstract

    Large appliances are major power consumers in households of industrialized countries. Although their energy efficiency has been increasing substantially in past decades, still additional energy efficiency potentials exist. Energy policy that aims at realizing these potentials faces, however, growing concerns about possible adverse effects on commodity prices. Here, we address these concerns by applying the experience curve approach to analyze long-term price and energy efficiency trends of three wet appliances (washing machines, laundry dryers, and dishwashers) and two cold appliances (refrigerators and freezers). We identify a robust long-term decline in both specific price and specific energy consumption of large appliances. Specific prices of wet appliances decline at learning rates (LR) of 29±8% and thereby much faster than those of cold appliances (LR of 9±4%). Our results demonstrate that technological learning leads to substantial price decline, thus indicating that the introduction of novel and initially expensive energy efficiency technologies does not necessarily imply adverse price effects in the long term. By extending the conventional experience curve approach, we find a steady decline in the specific energy consumption of wet appliances (LR of 20-35%) and cold appliances (LR of 13-17%). Our analysis suggests that energy policy might be able to bend down energy experience curves.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 2 (February)
    Pages: 770-783

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:770-783

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Energy efficiency Large appliances Experience curves;

    References

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    1. Dale, Larry & Antinori, Camille & McNeil, Michael & McMahon, James E. & Sydny Fujita, K., 2009. "Retrospective evaluation of appliance price trends," Energy Policy, Elsevier, vol. 37(2), pages 597-605, February.
    2. Argote, L. & Epple, D., 1990. "Learning Curves In Manufacturing," GSIA Working Papers 89-90-02, Carnegie Mellon University, Tepper School of Business.
    3. Junginger, M. & Faaij, A. & Turkenburg, W. C., 2005. "Global experience curves for wind farms," Energy Policy, Elsevier, vol. 33(2), pages 133-150, January.
    4. McDonald, Alan & Schrattenholzer, Leo, 2001. "Learning rates for energy technologies," Energy Policy, Elsevier, vol. 29(4), pages 255-261, March.
    5. Junginger, Martin & de Visser, Erika & Hjort-Gregersen, Kurt & Koornneef, Joris & Raven, Rob & Faaij, Andre & Turkenburg, Wim, 2006. "Technological learning in bioenergy systems," Energy Policy, Elsevier, vol. 34(18), pages 4024-4041, December.
    6. Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June.
    7. Bass, Frank M, 1980. "The Relationship between Diffusion Rates, Experience Curves, and Demand Elasticities for Consumer Durable Technological Innovations," The Journal of Business, University of Chicago Press, vol. 53(3), pages S51-67, July.
    8. Sue Bowden & Avner Offer, 1994. "Household appliances and the use of time: the United States and Britain since the 1920s," Economic History Review, Economic History Society, vol. 47(4), pages 725-748, November.
    9. Schiellerup, P., 2002. "An examination of the effectiveness of the EU minimum standard on cold appliances: the British case," Energy Policy, Elsevier, vol. 30(4), pages 327-332, March.
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    Cited by:
    1. Siderius, Hans-Paul, 2013. "The role of experience curves for setting MEPS for appliances," Energy Policy, Elsevier, vol. 59(C), pages 762-772.

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