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Analyzing price and efficiency dynamics of large appliances with the experience curve approach

Author

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  • Weiss, Martin
  • Patel, Martin K.
  • Junginger, Martin
  • Blok, Kornelis

Abstract

Large appliances are major power consumers in households of industrialized countries. Although their energy efficiency has been increasing substantially in past decades, still additional energy efficiency potentials exist. Energy policy that aims at realizing these potentials faces, however, growing concerns about possible adverse effects on commodity prices. Here, we address these concerns by applying the experience curve approach to analyze long-term price and energy efficiency trends of three wet appliances (washing machines, laundry dryers, and dishwashers) and two cold appliances (refrigerators and freezers). We identify a robust long-term decline in both specific price and specific energy consumption of large appliances. Specific prices of wet appliances decline at learning rates (LR) of 29±8% and thereby much faster than those of cold appliances (LR of 9±4%). Our results demonstrate that technological learning leads to substantial price decline, thus indicating that the introduction of novel and initially expensive energy efficiency technologies does not necessarily imply adverse price effects in the long term. By extending the conventional experience curve approach, we find a steady decline in the specific energy consumption of wet appliances (LR of 20-35%) and cold appliances (LR of 13-17%). Our analysis suggests that energy policy might be able to bend down energy experience curves.

Suggested Citation

  • Weiss, Martin & Patel, Martin K. & Junginger, Martin & Blok, Kornelis, 2010. "Analyzing price and efficiency dynamics of large appliances with the experience curve approach," Energy Policy, Elsevier, vol. 38(2), pages 770-783, February.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:770-783
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wilson, Charlie, 2012. "Up-scaling, formative phases, and learning in the historical diffusion of energy technologies," Energy Policy, Elsevier, vol. 50(C), pages 81-94.
    2. Kelly, Geoff, 2012. "Sustainability at home: Policy measures for energy-efficient appliances," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6851-6860.
    3. Scott, Michael J. & Daly, Don S. & Hathaway, John E. & Lansing, Carina S. & Liu, Ying & McJeon, Haewon C. & Moss, Richard H. & Patel, Pralit L. & Peterson, Marty J. & Rice, Jennie S. & Zhou, Yuyu, 2015. "Calculating impacts of energy standards on energy demand in U.S. buildings with uncertainty in an integrated assessment model," Energy, Elsevier, vol. 90(P2), pages 1682-1694.
    4. Chang, Yusang & Lee, Jinsoo & Yoon, Hyerim, 2012. "Alternative projection of the world energy consumption-in comparison with the 2010 international energy outlook," Energy Policy, Elsevier, vol. 50(C), pages 154-160.
    5. repec:eee:appene:v:205:y:2017:i:c:p:453-464 is not listed on IDEAS
    6. McNeil, Michael A. & Bojda, Nicholas, 2012. "Cost-effectiveness of high-efficiency appliances in the U.S. residential sector: A case study," Energy Policy, Elsevier, vol. 45(C), pages 33-42.
    7. Desroches, Louis-Benoit & Garbesi, Karina & Kantner, Colleen & Van Buskirk, Robert & Yang, Hung-Chia, 2013. "Incorporating experience curves in appliance standards analysis," Energy Policy, Elsevier, vol. 52(C), pages 402-416.
    8. repec:eee:appene:v:211:y:2018:i:c:p:346-357 is not listed on IDEAS
    9. Siderius, Hans-Paul, 2013. "The role of experience curves for setting MEPS for appliances," Energy Policy, Elsevier, vol. 59(C), pages 762-772.

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