Competing technologies and the diffusion of innovations: the emergence of energy-efficient lamps in the residential sector

Menanteau, Philippe; Lefebvre, Hervé

doi:10.1016/s0048-7333(99)00038-4

Cited by 69 publications

(54 citation statements)

References 15 publications

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“…At this cost differential, consumers balked at the idea of paying so much for a product they were habituated to paying so little for. (Menanteau and Lefebvre, 2000) In addition, analysts have noted that CFLs were far from perfect substitutes for standard incandescent bulbs. The early generation of CFLs generated many complaints from consumers, due to four aspects of the lights themselves.…”

Section: Compact Fluorescent Lampsmentioning

confidence: 99%

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Market failures, consumer preferences, and transaction costs inenergy efficiency purchase decisions

Sathaye¹,

Murtishaw²

2004

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Several factors limit the energy savings potential and increase the costs of energyefficient technologies to consumers. These factors may usefully be placed into two categories; one category is what economists would define as market failures and the other is related to consumer preferences. This paper provides a conceptual framework for understanding the roles of these factors, and develops a methodology to quantify their effects on costs and potentials of two energy efficient end uses -residential lighting and clothes washers. It notes the significant roles played by the high implicit cost of obtaining information about the benefits of the two technologies and the apparent inability to process and utilize information. For compact fluorescent lamps, this report finds a conservative estimate of the cost of conserved energy of 3.1 cents per kWh. For clothes washers, including water savings reduces the cost of conserved energy from 13.6 cents to 4.3 cents per equivalent kWh. Despite these benefits, market share remains low. About 18 million tons of CO 2 could be saved cost effectively from 2005 sales of these two technologies alone. The paper also notes that trading of carbon emissions will incur transaction costs that will range from less than 10 cents per metric ton of CO 2 for larger size projects and programs to a few dollars per metric ton of carbon for the smaller ones. Executive SummaryTwo general approaches have been used for the assessment of energy demand and supply -the so-called "bottom-up" and "top-down" approaches. The bottom-up approach focuses on individual technologies for delivering energy services, such as household durable goods and industrial process technologies. The top-down method assumes a general equilibrium or macroeconomic perspective, wherein costs are defined in terms of changes in economic output, income, or GDP, typically from the imposition of energy or emissions taxes.The bottom-up approach assumes that various factors prevent consumers from taking actions that would be in their private self-interest, that is, would result in the provision of energy services at lower cost. These factors include lack of information about energy efficiency opportunities, lack of access to capital to finance energy efficiency investment, misplaced incentives which separate responsibilities for making capital investments and paying operating costs, hidden costs, transaction costs, bounded rationality, and product unavailability.The thrust of this work thus focuses on the development of a bottom-up approach that (1) accounts for all costs of a mitigation option, including non-energy and transaction costs, and (2) allows for representation of the impact of each factor on a cost component and/or the penetration level of a mitigation option. We focus on energy efficiency options and the representation of their marginal cost curves, typically referred to as cost of conserved energy (CCE) curves, using the costs and benefits faced by consumers.We illustrate the use of our factors approach by demonstr...

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Section: Compact Fluorescent Lampsmentioning

confidence: 99%

“…Finally, the large size of CFLs and their ballasts prevented their use in many standard fixtures. (Menanteau and Lefebvre, 2000) Technological improvement has eliminated or mitigated most of these factors, yet market share remains very low. Table 1 lists the values used to calculate the initial CCE for purchasing a CFL.…”

Section: Compact Fluorescent Lampsmentioning

confidence: 99%

Market failures, consumer preferences, and transaction costs inenergy efficiency purchase decisions

Sathaye¹,

Murtishaw²

2004

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“…For these reasons, modern technology suggests the use of LED lamps as a solution to these problems [29]. They allow design engineers to reach high performances both aesthetically and in terms of energy consumption.…”

Section: Introductionmentioning

confidence: 99%

Maintenance and Energy Optimization of Lighting Systems for the Improvement of Historic Buildings: A Case Study

et al. 2015

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Abstract:Proper lighting is vital to improve, from an artistic point of view, the surface expanse and decorative detailing of architectural heritage buildings considered valuable. When properly lit, monumental buildings can become to onlookers an essential part of the city. Nowadays, for design planners dealing with the improvement of buildings, whose architectural design should be valorized, the real challenge is to combine the lighting artistic requirements with scrupulous economic management in order to limit the energy demand and to respect the environment. For these reasons, this case study examines the lighting of the monumental façade and the cloister of St. Peter in Chains situated in the Faculty of Engineering of Sapienza University of Rome. The present lighting installation, characterized by metal halides, compact fluorescent and halogen lamps, is compared with an alternative scenario presenting LED lamps and scenographic lighting of the monumental façade. Such comparison is based on the evaluation of the lighting levels for different visual tasks and on energy and maintenance issues; the first analysis was performed through the software DIALux Evo 4.0, whereas the second was performed using ecoCALC. This study leads to the conclusion that the lighting levels of the solution OPEN ACCESSSustainability 2015, 7 10771 presenting LED lamps are better than those of the present solution, and they comply with current standards. Finally, the higher costs of LED lamp installations and the scenographic lighting of the monumental façade are balanced by lower maintenance costs, with a payback period of seven years.

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“…lighting technology have been invented since it first appeared on the market (Menanteau & Lefebvre, 2000). It was also one of the first major applications to use electricity.…”

Section: Incandescentmentioning

confidence: 99%

“…Consumers did not appear to be eager to convert to this new and efficient type of lighting. The CFL innovation diffused very slowly and first targeted the service sector and not the residential market (Menanteau & Lefebvre, 2000). It would take another decade of technological development to overcome a series of disadvantages before the retrofit CFL presented some sort of competition to the GLS incandescent lamp.…”

Section: The Emergence and Development Of A New Type Of Product: The mentioning

confidence: 99%

Product evolution: how new (types of) products come about and develop over time into families of advanced versions

Ehlhardt¹

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Competing technologies and the diffusion of innovations: the emergence of energy-efficient lamps in the residential sector

Cited by 69 publications

References 15 publications

Market failures, consumer preferences, and transaction costs inenergy efficiency purchase decisions

Market failures, consumer preferences, and transaction costs inenergy efficiency purchase decisions

Maintenance and Energy Optimization of Lighting Systems for the Improvement of Historic Buildings: A Case Study

Product evolution: how new (types of) products come about and develop over time into families of advanced versions

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