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The effects of the energy star program on consumer electronics

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  • Savage, Scott J.

Abstract

I design choice experiments to estimate consumer preferences for energy-efficient televisions. I use my estimates to simulate the prices for the important strategic players following the removal of the blue energy star label from their television models. My results show four main findings. The representative household is willing to pay an additional $71 for a television with the label, which is 25 % more efficient than conventional models. Willingness-to-pay exceeds the typical household's utility-bill savings. Prices and profits decline for all models without the label. And, the overall decrease in welfare is about 14 % of total firm profits in the baseline, with over half of this decrease matching foregone utility-bill savings. On the one hand, my findings suggest that the blue energy star label helps firms and consumers make informed decisions about the branding and quality of energy efficiency. On the other hand, sizeable benefits appear to arise from mechanisms that are independent from cost savings, such as the green premium.

Suggested Citation

  • Savage, Scott J., 2025. "The effects of the energy star program on consumer electronics," Energy Economics, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:eneeco:v:152:y:2025:i:c:s0140988325007911
    DOI: 10.1016/j.eneco.2025.108964
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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