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How much household electricity consumption is actually saved by replacement with Light-Emitting Diodes (LEDs)?

Author

Listed:
  • Hiroki Onuma

    (Organization for University Research Initiatives, Waseda University, Japan, and Research Institute for Environmental Economics and Management, Waseda University, Japan)

  • Shigeru Matsumoto

    (Faculty of Economics, Aoyama Gakuin University, Japan, and Research Institute for Environmental Economics and Management, Waseda University, Japan)

  • Toshi H. Arimura

    (Faculty of Political Science and Economics, Waseda University, Tokyo, Japan, and Research Institute for Environmental Economics and Management, Waseda University, Japan)

Abstract

Many countries have promoted the replacement of conventional lamps with next-generation lamps to reduce electricity usage for lighting. In Japan, the majority of the lamps sold at home appliance mass merchant shops have been changed from incandescent lamps to energy-saving lamps. All conventional lamps are planned to be replaced with light-emitting diodes (LEDs) by 2020. Although the energy saving effect of LEDs has been stressed in many engineering studies, studies have not examined how much electricity has actually been saved by the installation of LEDs. Using micro-level data from the Survey on Carbon Dioxide Emission from Households (SCDEH), we compare monthly electricity usage between households using conventional lamps and those using LEDs. Our empirical result demonstrates that the installation of LEDs can reduce household electricity usage by 2.3%-2.8%. However, this saving rate is smaller than that expected from the engineering calculation. This result suggests the possibility of a rebound effect associated with LED installation. The empirical result further demonstrates that middleincome households have higher price elasticity of electricity demand and are more likely to receive greater benefit from LED installation.

Suggested Citation

  • Hiroki Onuma & Shigeru Matsumoto & Toshi H. Arimura, 2018. "How much household electricity consumption is actually saved by replacement with Light-Emitting Diodes (LEDs)?," RIEEM Discussion Paper Series 1803, Research Institute for Environmental Economics and Management, Waseda University.
    • Handle: RePEc:was:dpaper:1803
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    Cited by:

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    More about this item

    Keywords

    Electricity Usage; Energy Saving; LED; Household-Level Data; Conditional Demand Analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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