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Consumer stockpiling in response to the U.S. EISA “light bulb ban”

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  • Dong, Xiao
  • Klaiber, H. Allen

Abstract

This study investigates consumer behavior in anticipation of the United States Energy Independence and Security Act (EISA) energy mandate that effectively banned production and import (not the sale) of incandescent light bulbs. We use the gradual implementation of U.S. EISA energy standards, where only 100-watt incandescent bulbs were initially banned, to estimate a series of difference-in-difference models that examine consumer behavior. Our results show that stockpiling in response to the EISA mandate resulted in a 96.9% increase in 100-watt incandescent bulbs sold per store per week. A back-of-the-envelope calculation shows stockpiling reduced private energy savings between $7 million and $21 million in Ohio and between $199 million and $589 million in the United States. Stockpiling also reduced social carbon cost savings between $56 million and $166 million across the United States.

Suggested Citation

  • Dong, Xiao & Klaiber, H. Allen, 2019. "Consumer stockpiling in response to the U.S. EISA “light bulb ban”," Energy Economics, Elsevier, vol. 81(C), pages 566-576.
  • Handle: RePEc:eee:eneeco:v:81:y:2019:i:c:p:566-576
    DOI: 10.1016/j.eneco.2019.04.024
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    More about this item

    Keywords

    Energy efficiency; Light bulbs; EISA; Stockpiling; Carbon; Energy savings;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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