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Cost-effectiveness of high-efficiency appliances in the U.S. residential sector: A case study

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  • McNeil, Michael A.
  • Bojda, Nicholas

Abstract

This paper presents an analysis of the cost-effectiveness of high-efficiency appliances in the U.S. residential sector using cost and efficiency data developed as part of the regulatory process of the U.S. Department of Energy's Appliances and Commercial Equipment Standards Program. These data are presented as a case study in the development of an ‘efficiency technology database’ which can be expanded and published as a resource to other researchers and policy makers seeking scenarios that optimize efficiency policies and forecast their likely impacts on energy demand and greenhouse gas emissions. The use of this data to evaluate cost-effectiveness according to a variety of metrics is demonstrated using the example of one refrigerator–freezer product class. Cost-effectiveness is then evaluated in terms of cost of conserved energy for refrigerators, room air conditioners, water heaters, cooking equipment, central air conditioners and gas furnaces. The resulting potential of cost-effective improvement ranges from 1% to 53% of energy savings, with a typical potential of 15–20%.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:enepol:v:45:y:2012:i:c:p:33-42
    DOI: 10.1016/j.enpol.2011.12.050
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    References listed on IDEAS

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    1. 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.
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    3. Steven E. Stoft, 1995. "The Economics of Conserved-Energy "Supply" Curves," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 109-137.
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    1. Leibowicz, Benjamin D. & Lanham, Christopher M. & Brozynski, Max T. & Vázquez-Canteli, José R. & Castejón, Nicolás Castillo & Nagy, Zoltan, 2018. "Optimal decarbonization pathways for urban residential building energy services," Applied Energy, Elsevier, vol. 230(C), pages 1311-1325.
    2. Wijaya, Muhammad Ery & Tezuka, Tetsuo, 2013. "Measures for improving the adoption of higher efficiency appliances in Indonesian households: An analysis of lifetime use and decision-making in the purchase of electrical appliances," Applied Energy, Elsevier, vol. 112(C), pages 981-987.
    3. Yushchenko, Alisa & Patel, Martin Kumar, 2017. "Cost-effectiveness of energy efficiency programs: How to better understand and improve from multiple stakeholder perspectives?," Energy Policy, Elsevier, vol. 108(C), pages 538-550.
    4. Franzò, Simone & Frattini, Federico & Cagno, Enrico & Trianni, Andrea, 2019. "A multi-stakeholder analysis of the economic efficiency of industrial energy efficiency policies: Empirical evidence from ten years of the Italian White Certificate Scheme," Applied Energy, Elsevier, vol. 240(C), pages 424-435.
    5. Paola Rocchi & José Manuel Rueda-Cantuche & Alicia Boyano & Alejandro Villanueva, 2019. "Macroeconomic Effects of EU Energy Efficiency Regulations on Household Dishwashers, Washing Machines and Washer Dryers," Energies, MDPI, vol. 12(22), pages 1-21, November.
    6. Garg, Amit & Shukla, P.R. & Maheshwari, Jyoti & Upadhyay, Jigeesha, 2014. "An assessment of household electricity load curves and corresponding CO2 marginal abatement cost curves for Gujarat state, India," Energy Policy, Elsevier, vol. 66(C), pages 568-584.
    7. Gerke, Brian F. & McNeil, Michael A. & Tu, Thomas, 2017. "The International Database of Efficient Appliances (IDEA): A new tool to support appliance energy-efficiency deployment," Applied Energy, Elsevier, vol. 205(C), pages 453-464.

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