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Economic feasibility for acquisition of efficient refrigerators in Brazil

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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