IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v42y2021i4p253-266.html
   My bibliography  Save this article

ENERGY STAR Appliance Market Shares: Do They Respond to Electricity Prices, and Does It Matter?

Author

Listed:
  • Peter M. Schwarz
  • Craig A. Depken II
  • Michael W. Herron
  • Benjamin J. Correlf

Abstract

We address an apparent paradox that the market shares of four ENERGY STAR appliances in the United States do not respond to within-state changes in electricity prices. We resolve the paradox by showing that market shares do respond to between-state variation in electricity prices. We also suggest an economic explanation for the paradox through the timing of appliance purchases. Using the estimation results, we find that the four ENERGY STAR appliances reduce carbon emissions by 1.9 million megawatt-hours per year, equivalent to removing 0.1% of all U.S. vehicles, and that the addition of a $100/ton CO2 price would increase these figures to 2.1 million megawatt-hours and 0.11%.

Suggested Citation

  • Peter M. Schwarz & Craig A. Depken II & Michael W. Herron & Benjamin J. Correlf, 2021. "ENERGY STAR Appliance Market Shares: Do They Respond to Electricity Prices, and Does It Matter?," The Energy Journal, , vol. 42(4), pages 253-266, July.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:4:p:253-266
    DOI: 10.5547/01956574.42.4.psch
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.42.4.psch
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.42.4.psch?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kenneth Gillingham & Karen Palmer, 2014. "Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 18-38, January.
    2. Manisha Jain, Anand B. Rao, and Anand Patwardhan, 2021. "Energy Cost Information and Consumer Decisions: Results from a Choice Experiment on Refrigerator Purchases in India," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 253-272.
    3. Sun, Bixuan, 2018. "Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program," Energy Economics, Elsevier, vol. 69(C), pages 335-349.
    4. Joseph L Dieleman & Tara Templin, 2014. "Random-Effects, Fixed-Effects and the within-between Specification for Clustered Data in Observational Health Studies: A Simulation Study," PLOS ONE, Public Library of Science, vol. 9(10), pages 1-17, October.
    5. Frondel, Manuel & Vance, Colin, 2011. "Future Pain at the Diesel Pump? Potential Effects of the European Commission's Energy Taxation Proposal," Ruhr Economic Papers 280, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    Full references (including those not matched with items on IDEAS)

    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. He, Shutong & Blasch, Julia & van Beukering, Pieter & Wang, Junfeng, 2022. "Energy labels and heuristic decision-making: The role of cognition and energy literacy," Energy Economics, Elsevier, vol. 114(C).
    2. Qiu, Yueming & Kahn, Matthew E., 2019. "Impact of voluntary green certification on building energy performance," Energy Economics, Elsevier, vol. 80(C), pages 461-475.
    3. Feser, Daniel & Runst, Petrik, 2015. "Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success," ifh Working Papers 1 (2015), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    4. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    5. Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2020. "Conveyance, envy, and homeowner choice of appliances," Energy Economics, Elsevier, vol. 89(C).
    6. Obsa Urgessa Ayana & Jima Degaga, 2022. "Effects of rural electrification on household welfare: a meta-regression analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 209-261, June.
    7. Katris, Antonios & Turner, Karen, 2021. "Can different approaches to funding household energy efficiency deliver on economic and social policy objectives? ECO and alternatives in the UK," Energy Policy, Elsevier, vol. 155(C).
    8. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2021. "Heterogeneous preferences and investments in energy saving measures," Resource and Energy Economics, Elsevier, vol. 63(C).
    9. Florian Knobloch & Hector Pollitt & Unnada Chewpreecha & Vassilis Daioglou & Jean-Francois Mercure, 2017. "Simulating the deep decarbonisation of residential heating for limiting global warming to 1.5C," Papers 1710.11019, arXiv.org, revised May 2018.
    10. Olsthoorn, Mark & Schleich, Joachim & Hirzel, Simon, 2017. "Adoption of Energy Efficiency Measures for Non-residential Buildings: Technological and Organizational Heterogeneity in the Trade, Commerce and Services Sector," Ecological Economics, Elsevier, vol. 136(C), pages 240-254.
    11. Manisha Jain, Anand B. Rao, and Anand Patwardhan, 2021. "Energy Cost Information and Consumer Decisions: Results from a Choice Experiment on Refrigerator Purchases in India," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 253-272.
    12. Stefano Ceolotto & Eleanor Denny, 2021. "Putting a new 'spin' on energy labels: measuring the impact of reframing energy efficiency on tumble dryer choices in a multi-country experiment," Trinity Economics Papers tep1521, Trinity College Dublin, Department of Economics.
    13. Ben Gilbert & Jacob LaRiviere & Kevin Novan, 2019. "Additionality, Mistakes, and Energy Efficiency Investment," Working Papers 2019-01, Colorado School of Mines, Division of Economics and Business.
    14. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    15. Yasamin Kusunoki & Jennifer S. Barber, 2020. "The Dynamics of Intimate Relationships and Contraceptive Use During Early Emerging Adulthood," Demography, Springer;Population Association of America (PAA), vol. 57(6), pages 2003-2034, December.
    16. Faure, Corinne & Schleich, Joachim, 2020. "Poor energy ratings when appliances convey?," Energy Policy, Elsevier, vol. 139(C).
    17. Yael Nidam & Ali Irani & Jamie Bemis & Christoph Reinhart, 2023. "Census-based urban building energy modeling to evaluate the effectiveness of retrofit programs," Environment and Planning B, , vol. 50(9), pages 2394-2406, November.
    18. Feser, Daniel & Runst, Petrik, 2016. "Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success," Energy Policy, Elsevier, vol. 98(C), pages 309-317.
    19. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    20. Fleckinger, Pierre & Glachant, Matthieu & Tamokoué Kamga, Paul-Hervé, 2019. "Energy Performance Certificates and investments in building energy efficiency: A theoretical analysis," Energy Economics, Elsevier, vol. 84(S1).

    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:sae:enejou:v:42:y:2021:i:4:p:253-266. 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: SAGE Publications (email available below). General contact details of provider: .

    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.