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Consumer discount rates implied by purchases of energy-efficient refrigerators

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  • Meier, Alan K.
  • Whittier, Jack

Abstract

Consumer purchasing patterns for a standard and an energy-efficient refrigerator are presented. These models differed only in their initial cost and electricity consumption. Consumers tended to buy the more efficient model in regions with higher electricity prices. A distribution of implied consumer discount rates is constructed. Roughly 25 of the consumers behaved as if they had real discount rates above 60%, 15 between 35 and 60%, and 25 less than 35%.

Suggested Citation

  • Meier, Alan K. & Whittier, Jack, 1983. "Consumer discount rates implied by purchases of energy-efficient refrigerators," Energy, Elsevier, vol. 8(12), pages 957-962.
  • Handle: RePEc:eee:energy:v:8:y:1983:i:12:p:957-962
    DOI: 10.1016/0360-5442(83)90094-4
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