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Is an Incentive Policy for Energy Efficient Products Effective for Air Purifiers? The Case of South Korea

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  • Woojae Kim

    (Department of Industrial and Management Systems Engineering, Kyung Hee University, 1732 Deogyeong-daero, Giheung-gu, Yongin, Gyeonggi 17104, Korea)

  • Sungmin Ko

    (Department of Industrial and Management Systems Engineering, Kyung Hee University, 1732 Deogyeong-daero, Giheung-gu, Yongin, Gyeonggi 17104, Korea)

  • Myoungjin Oh

    (Department of Industrial and Management Systems Engineering, Kyung Hee University, 1732 Deogyeong-daero, Giheung-gu, Yongin, Gyeonggi 17104, Korea)

  • Ie-jung Choi

    (R&D Financial Project Evaluation Center, Science and Technology Policy Institute (STEPI), A-3F Sejong National Research Complex, 370 Sicheong-daero, Sejong-si 30147, Korea)

  • Jungwoo Shin

    (Department of Industrial and Management Systems Engineering, Kyung Hee University, 1732 Deogyeong-daero, Giheung-gu, Yongin, Gyeonggi 17104, Korea)

Abstract

Recent increases in fine and ultrafine dust in South Korea have led to sharp increases in the sale of air purifiers, and that trend is expected to continue. As the sale of air purifiers increases, the energy that is consumed by air purifiers also increases. Therefore, improving the energy efficiency of air purifiers is an important part of improving the overall energy efficiency of society. We studied how different incentive policies affect consumer behavior because encouraging people to buy energy efficient air purifiers is important. We first investigated consumer preferences regarding air purifiers. Stated preference data were gathered from a choice experiment and a mixed logit model was used for the analysis. The results show that the most preferred attribute was price, followed by an eco-label. Based on that result, we conducted a scenario analysis to examine the economic and environmental effects of an incentive policy and eco-labeling. The monetary incentive policy increased the market share for air purifiers with a first-grade energy efficiency rating to 2.2%. The annual electricity use reduction was 5.9 GWh, with a CO 2 emission reduction of 2520 tons and a policy monetary benefit of KRW 441,340,922 when we converted the effect of that market share change into economic and environmental terms. Eco-labeling also brought considerable change in the market share. These results provide a reference for implementing policies to encourage consumers to purchase energy efficient air purifiers.

Suggested Citation

  • Woojae Kim & Sungmin Ko & Myoungjin Oh & Ie-jung Choi & Jungwoo Shin, 2019. "Is an Incentive Policy for Energy Efficient Products Effective for Air Purifiers? The Case of South Korea," Energies, MDPI, vol. 12(9), pages 1-14, May.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:9:p:1664-:d:227609
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    Cited by:

    1. Zhang, Yixiang & Li, Juan & Tao, Wenwen, 2021. "Does energy efficiency affect appliance prices? Empirical analysis of air conditioners in China based on propensity score matching," Energy Economics, Elsevier, vol. 101(C).
    2. Beatriz Aibar-Guzmán & José-Valeriano Frías-Aceituno, 2021. "Is It Necessary to Centralize Power in the CEO to Ensure Environmental Innovation?," Administrative Sciences, MDPI, vol. 11(1), pages 1-21, March.
    3. Myoungjin Oh & Jungwoo Shin & Pil‐Ju Park & Sunmee Kim, 2020. "Does eco‐innovation drive sales and technology investment? Focusing on eco‐label in Korea," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3174-3186, December.
    4. Cristina Aibar-Guzmán & Francisco M. Somohano-Rodríguez, 2021. "Do Consumers Value Environmental Innovation in Product?," Administrative Sciences, MDPI, vol. 11(1), pages 1-15, March.
    5. Zhang, Yixiang & Tao, Wenwen, 2020. "Will energy efficiency affect appliance price? An empirical analysis of refrigerators in China based on hedonic price model," Energy Policy, Elsevier, vol. 147(C).

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