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Net private benefits of purchasing eco-labeled air conditioners and subsidization policies in China

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  • Sun, Junxiu
  • Yin, Haitao
  • Wang, Feng

Abstract

Built on a data set of 527 air conditioner models collected from an online retailer, this study investigates whether the savings that consumers realize on their private electricity bills from purchasing energy-efficient appliances compensate for the additional cost of the appliances on the market, and if not, the size of the gap between the savings and the cost. Our findings show that, except for the most energy-efficient category, the cost savings from using energy-efficient air conditioners does compensate for their higher price. Therefore, any government subsidy should be reserved for the most efficient products. For less energy-efficient appliances, the best policy may be to provide more effective information instead of a subsidy because the subsidy might attract consumers away from more energy-efficient air conditioners and result in an unwanted effect.

Suggested Citation

  • Sun, Junxiu & Yin, Haitao & Wang, Feng, 2014. "Net private benefits of purchasing eco-labeled air conditioners and subsidization policies in China," Energy Policy, Elsevier, vol. 73(C), pages 186-195.
    • Handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:186-195
    DOI: 10.1016/j.enpol.2014.04.039
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    1. Gongyi Zhang & Chang Zhang & Hongguang Nie, 2021. "An Overview of China’s Energy Labeling Policy Portfolio: China’s Contribution to Addressing the Global Goal of Sustainable Development," SAGE Open, , vol. 11(1), pages 21582440209, January.
    2. Guo, Fei & Pachauri, Shonali & Cofala, Janusz, 2017. "Cost-effective subsidy incentives for room air conditioners in China: An analysis based on a McFadden-type discrete choice model," Energy Policy, Elsevier, vol. 110(C), pages 375-385.

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