Cover: Economic implications of mandated efficiency standards for household appliances: comment

Economic implications of mandated efficiency standards for household appliances: comment

Published 1981

by Stanley Besen, Leland Johnson

Purchase Print Copy

 Format Price
Add to Cart Paperback14 pages $20.00

In a recent article, J. Daniel Khazzoom has argued that a mandated appliance energy efficiency standard may raise energy consumption if increased intensity of utilization offsets the appliance's increased efficiency. However, since the level of services demanded from the use of an appliance will be reduced by a mandated standard (because its effect must be to raise the combined cost of investment and operation) and since the amount of energy consumed at every level of services demanded will decline (because of the mandated standard), energy consumption is necessarily reduced. Khazzoom's result may occur, however, when the standard is imposed on only some appliances, if consumers substitute the use of other less efficient ones. One implication is that assessment of a mandated standard must consider appliances other than those that are subject to it.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.