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Economic Evaluation of Energy Efficiency Labelling in Domestic Appliances: the Spanish Market

Keywords: energy efficiency, Spain, labels, appliances

Author(s): Ibon Galarraga and Josu Lucas

Date: 2013-19-03

Issue: 2013-08

  Download this working paper (930 KB.)

This paper estimates the economic value that consumers place on energy efficiency (EE) labels for appliances in the Spanish market.

It uses the hedonic method to calculate the price premium paid in the market for that attribute isolated from others. Furthermore, the Quantity Based Demand System (QBDS) is applied to calculate the own and cross price elasticities of demand for both EE appliances and others.

These elasticities are useful for improving the design of policies to promote EE. The paper looks at three different appliances marketed in Spain during 2012: washing machines, fridges and dishwashers.

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