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How much household electricity consumption is actually saved by replacement with Light-Emitting Diodes (LEDs)?

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  • Onuma, Hiroki
  • Matsumoto, Shigeru
  • Arimura, Toshi H.

Abstract

Many countries have promoted the replacement of conventional lamps with next-generation lamps to reduce electricity usage for lighting. In Japan, the majority of the lamps sold at home appliance mass merchant shops have been changed from incandescent lamps to energy-saving lamps. All conventional lamps are planned to be replaced with light-emitting diodes (LEDs) by 2020. Although the energy-saving effect of LEDs has been stressed in many engineering studies, the amount of electricity that is actually saved by the installation of LEDs has not been examined. Using microlevel data from the Survey on Carbon Dioxide Emission from Households (SCDEH), we compare monthly electricity usage between households using conventional lamps and those using LEDs. Our empirical results demonstrate that households have reduced their electricity usage by 1.96% through past LEDization. Households can reduce their electricity usage by an additional 6.99% when LEDization is completed. The empirical results further demonstrate that middle-income households have higher price elasticity of electricity demand and are more likely to receive greater benefit from LED installation.

Suggested Citation

  • Onuma, Hiroki & Matsumoto, Shigeru & Arimura, Toshi H., 2020. "How much household electricity consumption is actually saved by replacement with Light-Emitting Diodes (LEDs)?," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 224-238.
    • Handle: RePEc:eee:ecanpo:v:68:y:2020:i:c:p:224-238
    DOI: 10.1016/j.eap.2020.09.015
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    More about this item

    Keywords

    Energy saving; Household electricity usage; LEDization; Microlevel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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