Concepedia

Economic Implications of Mandated Efficiency in Standards for Household Appliances

The Energy Journal · 1980 · 889 citations · 4 references

TL;DR

Mandated efficiency standards for cars and household appliances dominate energy‑conservation policy, yet the energy‑savings estimates that support them are often derived mechanically, as shown in DOE and California Energy Commission reports. The author adopts a generic definition of “appliance” to encompass all household durables. The analysis indicates that a 1 % increase in appliance efficiency predicts a 1 % drop in demand, and a 2 % increase predicts a 2 % drop, revealing a linear inverse relationship.

Abstract

In the discussion of energy conservation, a great deal of attention has focused on mandated efficiency standards for cars and energy-using household appliances. (In this article, I will use the term "appliance" in a generic sense to cover household durables). Unfortunately, the estimates of energy savings predicted to result from these mandated standards are derived mechanically. ' When mandated standards raise the appliance efficiency by 1 percent, demand is predicted to drop by 1 percent; when they raise efficiency by 2 percent, demand is predicted to drop by 2 percent; and so on. Examples of such results are found in reports by the Department of Energy (1979a, 1980) and by the Staff of the California Energy Commission (1979) on energy demand in California in the coming two decades.