IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v87y2010i1p28-37.html
   My bibliography  Save this article

Economic feasibility for acquisition of efficient refrigerators in Brazil

Author

Listed:
  • Cardoso, Rafael Balbino
  • Nogueira, Luiz Augusto Horta
  • Haddad, Jamil

Abstract

Since 1993, the Brazilian National Program of Electricity Conservation has been developing the PROCEL Label Program, oriented towards helping consumers to buy more efficient home appliances. In this context, an energy savings of 1379 GWh and a reduction of 197 MW in the Brazilian demand in 2007 are estimated as resulting from efficiency labeling in refrigerators and freezers. This paper aims to evaluate the economic feasibility of purchasing labeled refrigerators instead of inefficient ones, from the consumer's point of view, considering actual market conditions and buying in cash or financing. The evaluation of energy saving was done for 22 different models of refrigerators and the economy was calculated considering the retail price in the Brazilian market and two actual electricity tariffs, taking into account, respectively, high and low household electricity consumption. The effect of ambient temperature on refrigerator performance was evaluated in two conditions: according to the Brazilian standard for performance tests (32 °C) and using the average temperature of Southern Brazil (18 °C), the mildest region. The benefit in buying labeled refrigerators was evaluated using the Internal Rate of Return and the Payback Time for a cash flow during the appliance life, estimated as 16 years. The results indicate that for cash purchase, for any electricity tariff and for both ambient temperatures studied, the consumers are economically benefited buying labeled refrigerators instead of less efficient models. For credit purchases, in the evaluated conditions, high-tariff consumer typically gains selecting labeled refrigerator, on the other hand, for low-tariff consumer and in colder areas, it is economically advisable to buy less efficient appliances. Sensitivity analysis of energy tariff and financing conditions are presented.

Suggested Citation

  • Cardoso, Rafael Balbino & Nogueira, Luiz Augusto Horta & Haddad, Jamil, 2010. "Economic feasibility for acquisition of efficient refrigerators in Brazil," Applied Energy, Elsevier, vol. 87(1), pages 28-37, January.
    • Handle: RePEc:eee:appene:v:87:y:2010:i:1:p:28-37
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-2619(09)00222-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Meyers, S & McMahon, J.E & McNeil, M & Liu, X, 2003. "Impacts of US federal energy efficiency standards for residential appliances," Energy, Elsevier, vol. 28(8), pages 755-767.
    2. Geller, Howard & Harrington, Philip & Rosenfeld, Arthur H. & Tanishima, Satoshi & Unander, Fridtjof, 2006. "Polices for increasing energy efficiency: Thirty years of experience in OECD countries," Energy Policy, Elsevier, vol. 34(5), pages 556-573, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bortoni, Edson C. & Magalhães, Leonardo P. & Nogueira, Luiz A.H. & Bajay, Sérgio V. & Cassula, Agnelo M., 2020. "An assessment of energy efficient motors application by scenarios evaluation," Energy Policy, Elsevier, vol. 140(C).
    2. Perdana, Sigit & Vielle, Marc, 2022. "Making the EU Carbon Border Adjustment Mechanism acceptable and climate friendly for least developed countries," Energy Policy, Elsevier, vol. 170(C).
    3. Shaun McRae, 2015. "Infrastructure Quality and the Subsidy Trap," American Economic Review, American Economic Association, vol. 105(1), pages 35-66, January.
    4. Ruble, Isabella & Karaki, Sami, 2013. "Introducing mandatory standards for select household appliances in Lebanon: A cost-benefit analysis," Energy Policy, Elsevier, vol. 52(C), pages 608-617.
    5. Jain, Manisha & Rao, Anand B. & Patwardhan, Anand, 2018. "Appliance labeling and consumer heterogeneity: A discrete choice experiment in India," Applied Energy, Elsevier, vol. 226(C), pages 213-224.
    6. Andrés Felipe Ramírez Sánchez & Juan Sebastián Solís-Chaves & Andrea del Pilar Rodríguez-Muñoz & Luis Alejandro Arias Barragán & Diana Ximena Serna-Pérez & Omar Fredy Prías Caicedo, 2022. "Residential Refrigeration MEPS in Colombia: A Review and a Comparative Analysis," Energies, MDPI, vol. 15(17), pages 1-35, September.
    7. Daioglou, Vassilis & van Ruijven, Bas J. & van Vuuren, Detlef P., 2012. "Model projections for household energy use in developing countries," Energy, Elsevier, vol. 37(1), pages 601-615.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Besagni, Giorgio & Premoli Vilà, Lidia & Borgarello, Marco & Trabucchi, Andrea & Merlo, Marco & Rodeschini, Jacopo & Finazzi, Francesco, 2021. "Electrification pathways of the Italian residential sector under socio-demographic constrains: Looking towards 2040," Energy, Elsevier, vol. 217(C).
    2. Hong, Junjie & Shi, Fangyuan & Zheng, Yuhan, 2023. "Does network infrastructure construction reduce energy intensity? Based on the “Broadband China” strategy," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Jun Li & Michel Colombier, 2011. "Economic instruments for mitigating carbon emissions: scaling up carbon finance in China’s buildings sector," Climatic Change, Springer, vol. 107(3), pages 567-591, August.
    4. Shi, Xunpeng, 2014. "Setting effective mandatory energy efficiency standards and labelling regulations: A review of best practices in the Asia Pacific region," Applied Energy, Elsevier, vol. 133(C), pages 135-143.
    5. Mabroor Hassan & Manzoor K Afridi & Muhammad I Khan, 2018. "An overview of alternative and renewable energy governance, barriers, and opportunities in Pakistan," Energy & Environment, , vol. 29(2), pages 184-203, March.
    6. Halawa, E. & Chang, K.C. & Yoshinaga, M., 2015. "Thermal performance evaluation of solar water heating systems in Australia, Taiwan and Japan – A comparative review," Renewable Energy, Elsevier, vol. 83(C), pages 1279-1286.
    7. Fischer, Carolyn, 2005. "On the importance of the supply side in demand-side management," Energy Economics, Elsevier, vol. 27(1), pages 165-180, January.
    8. Du, Minzhe & Wang, Bing & Zhang, Ning, 2018. "National research funding and energy efficiency: Evidence from the National Science Foundation of China," Energy Policy, Elsevier, vol. 120(C), pages 335-346.
    9. Guo, Jingyu & Mallinson, Daniel J. & Ortiz, Selena E. & Domenica Iulo, Lisa, 2024. "Collaborative governance challenges in energy efficiency and conservation: The case of Pennsylvania," Utilities Policy, Elsevier, vol. 87(C).
    10. Silverman, Rochelle E. & Flores, Robert J. & Brouwer, Jack, 2020. "Energy and economic assessment of distributed renewable gas and electricity generation in a small disadvantaged urban community," Applied Energy, Elsevier, vol. 280(C).
    11. Altwies, Joy E. & Nemet, Gregory F., 2013. "Innovation in the U.S. building sector: An assessment of patent citations in building energy control technology," Energy Policy, Elsevier, vol. 52(C), pages 819-831.
    12. Garrett, Vicki & Koontz, Tomas M., 2008. "Breaking the cycle: Producer and consumer perspectives on the non-adoption of passive solar housing in the US," Energy Policy, Elsevier, vol. 36(4), pages 1551-1566, April.
    13. Barker, Terry & Ekins, Paul & Foxon, Tim, 2007. "Macroeconomic effects of efficiency policies for energy-intensive industries: The case of the UK Climate Change Agreements, 2000-2010," Energy Economics, Elsevier, vol. 29(4), pages 760-778, July.
    14. Alexander Melnik & Irina Naoumova & Kirill Ermolaev & Jerome Katrichis, 2021. "Driving Innovation through Energy Efficiency: A Russian Regional Analysis," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    15. Gasparatos, Alexandros & Gadda, Tatiana, 2009. "Environmental support, energy security and economic growth in Japan," Energy Policy, Elsevier, vol. 37(10), pages 4038-4048, October.
    16. Cohan, Daniel S. & Douglass, Catherine, 2011. "Potential emissions reductions from grandfathered coal power plants in the United States," Energy Policy, Elsevier, vol. 39(9), pages 4816-4822, September.
    17. Nikhil Kaza & T. William Lester & Daniel A. Rodriguez, 2013. "The Spatio-temporal Clustering of Green Buildings in the United States," Urban Studies, Urban Studies Journal Limited, vol. 50(16), pages 3262-3282, December.
    18. Zhao, Yue & Ke, Jing & Ni, Chun Chun & McNeil, Michael & Khanna, Nina Zheng & Zhou, Nan & Fridley, David & Li, Qiqiang, 2014. "A comparative study of energy consumption and efficiency of Japanese and Chinese manufacturing industry," Energy Policy, Elsevier, vol. 70(C), pages 45-56.
    19. Eoin Ó Broin & Jonas Nässén & Filip Johnsson, 2015. "Energy efficiency policies for space heating in EU countries: A panel data analysis for the period 1990–2010," Post-Print hal-01205485, HAL.
    20. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:87:y:2010:i:1:p:28-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.