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Economic Evaluation of Energy Efficiency Labelling in Domestic Appliances: the Spanish Market

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  • Ibon Galarraga
  • Josu Lucas

Abstract

This paper estimates the economic value that consumers place on energy efficiency (EE) labels for appliances in the Spanish market. It uses the hedonic method to calculate the price premium paid in the market for that attribute isolated from others. Furthermore, the Quantity Based Demand System (QBDS) is applied to calculate the own and cross price elasticities of demand for both EE appliances and others. These elasticities are useful for improving the design of policies to promote EE. The paper looks at three different appliances marketed in Spain during 2012: washing machines, fridges and dishwashers.

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File URL: http://www.bc3research.org/index.php?option=com_wpapers&task=downpubli&iddoc=66&repec=1&Itemid=279
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Bibliographic Info

Paper provided by BC3 in its series Working Papers with number 2013-08.

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Date of creation: Mar 2013
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Publication status: Published
Handle: RePEc:bcc:wpaper:2013-08

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Web page: http://www.bc3research.org/

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Keywords: energy efficiency; Spain; labels; appliances;

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  1. Mills, Bradford F. & Schleich, Joachim, 2009. "What's driving energy efficient appliance label awareness and purchase propensity?," Working Papers "Sustainability and Innovation" S1/2009, Fraunhofer Institute for Systems and Innovation Research (ISI).
  2. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  3. Galarraga, Ibon & González-Eguino, Mikel & Markandya, Anil, 2011. "Willingness to pay and price elasticities of demand for energy-efficient appliances: Combining the hedonic approach and demand systems," Energy Economics, Elsevier, Elsevier, vol. 33(S1), pages S66-S74.
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