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Analysing the Impact of ENERGY STAR Rebate Policies in the US

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  • Souvik Datta

    ()
    (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich)

  • Massimo Filippini

    ()
    (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich and Department of Economics, University of Lugano, Switzerland)

Abstract

In this paper we estimate the impact of rebate policies in various US states on the share of sales of ENERGY STAR household appliances between 2001 and 2006. We use a difference-in-difference approach to exploit the variation in the rebate policies over time and across US states to estimate their effect on the share of sales of ENERGY STAR household appliances. To account for the possibility of an endogenous rebate policy we use an instrumental variables approach in a fixed effects panel data regression model. Results suggest that rebate policies increase the share of sales of ENERGY STAR household appliances by around 7.4% and this represents an impact of around 21% on the mean level of the share of sales of ENERGY STAR household appliances in the US between 2001 and 2006.

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Bibliographic Info

Paper provided by CEPE Center for Energy Policy and Economics, ETH Zurich in its series CEPE Working paper series with number 12-86.

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Length: 18 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:cee:wpcepe:12-86

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Related research

Keywords: Residential appliances; ENERGY STAR; Rebate policies; Difference-in-difference;

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  1. Webber, C. A. & Brown, R. E. & Koomey, J., 2000. "Savings estimates for the E S(R) voluntary labeling program," Energy Policy, Elsevier, vol. 28(15), pages 1137-1149, December.
  2. Nadel, Steven & Geller, Howard, 1996. "Utility DSM : What have we learned? Where are we going?," Energy Policy, Elsevier, vol. 24(4), pages 289-302, April.
  3. Mark E Schaffer & Steven Stillman, 2006. "XTOVERID: Stata module to calculate tests of overidentifying restrictions after xtreg, xtivreg, xtivreg2, xthtaylor," Statistical Software Components S456779, Boston College Department of Economics, revised 02 Nov 2011.
  4. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages F672-94, November.
  5. Souvik Datta & Sumeet Gulati, 2011. "Utility Rebates for ENERGY STAR Appliances: Are They Effective?," CEPE Working paper series 11-81, CEPE Center for Energy Policy and Economics, ETH Zurich.
  6. B. Howarth, Richard & Haddad, Brent M. & Paton, Bruce, 2000. "The economics of energy efficiency: insights from voluntary participation programs," Energy Policy, Elsevier, vol. 28(6-7), pages 477-486, June.
  7. Faiers, Adam & Neame, Charles, 2006. "Consumer attitudes towards domestic solar power systems," Energy Policy, Elsevier, vol. 34(14), pages 1797-1806, September.
  8. McWhinney, Marla & Fanara, Andrew & Clark, Robin & Hershberg, Craig & Schmeltz, Rachel & Roberson, Judy, 2005. "ENERGY STAR product specification development framework: using data and analysis to make program decisions," Energy Policy, Elsevier, vol. 33(12), pages 1613-1625, August.
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