The impact of energy prices on product innovation: Evidence from the UK refrigerator market

Cohen, François; Glachant, Matthieu; Söderberg, Magnus

doi:10.1016/j.eneco.2017.10.020

Cited by 18 publications

(10 citation statements)

References 19 publications

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“…Little research is available on this, but some authors already indicate possible situations in which welfare effect is not clear. Mahenc (2007), for example, studies the possible overpricing of green products, whereas Houde (2014b) and Cohen et al (2014) argue that manufacturers may respond to energy certificates and standards with price discrimination and other strategies. The cost-benefit analysis for the deployment of smart meters, for instance, is not clear either (see e.g.…”

Section: Conclusion and Directions For Future Researchmentioning

confidence: 99%

The role of information for energy efficiency in the residential sector

et al. 2015

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The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Professor Brigid Laffan, aims to develop inter-disciplinary and comparative research on the major issues facing the process of European integration, European societies and Europe's place in 21 st century global politics. The Centre is home to a large post-doctoral programme and hosts major research programmes, projects and data sets, in addition to a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration, the expanding membership of the European Union, developments in Europe's neighbourhood and the wider world.

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Section: Conclusion and Directions For Future Researchmentioning

confidence: 99%

The role of information for energy efficiency in the residential sector

et al. 2015

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“…13 The model could be generalized to include capital equipment purchasing decisions, but we do not consider this extension here. An added complexity with capital costs pertaining to energy-using equipment, as noted by Cohen et al (2014), is that as energy costs rise, such equipment, especially products that are relatively less energy-efficient, may be heavily discounted.…”

Section: A Simple Model With Multiple Energy Sources and Servicesmentioning

confidence: 98%

Economic modelling of energy services: Rectifying misspecified energy demand functions

Hunt

Ryan

2015

Energy Economics

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JEL classification: C51 Q41 Keywords:Modelling demands for energy services Energy efficiency Energy demand function misspecification Although it is well known that energy demand is derived, since energy is required not for its own sake but for the energy services it produces -such as heating, lighting, and motive power -energy demand models, both theoretical and empirical, often fail to take account of this feature. In this paper, we highlight the misspecification that results from ignoring this aspect, and its empirical implications -biased estimates of price elasticities and other measures -and provide a relatively simple and empirically practicable way to rectify it, which has a strong theoretical grounding. To do so, we develop an explicit model of consumer behaviour in which utility derives from consumption of energy services rather than from the energy sources that are used to produce them. As we discuss, this approach opens up the possibility of examining many aspects of energy demand in a theoretically sound way that have not previously been considered on a widespread basis, although some existing empirical work could be interpreted as being consistent with this type of specification. While this formulation yields demand equations for energy services rather than for energy or particular energy sources, these are shown to be readily converted, without added complexity, into the standard type of energy demand equation(s) that is (are) typically estimated. The additional terms that the resulting energy demand equations include, compared to those that are typically estimated, highlight the misspecification that is implicit when typical energy demand equations are estimated. A simple solution for dealing with an apparent drawback of this formulation for empirical purposes, namely that information is required on typically unobserved energy efficiency, indicates how energy efficiency can be captured in the model, such as by including exogenous trends and/or including its possible dependence on past energy prices. The approach is illustrated using an empirical example that involves estimation of an aggregate energy demand function for the UK with data over the period 1960-2011.

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“…In a product choice situation, they compare future savings with the product price. Thus, the impact of energy efficiency information depends on how 2 Exceptions are Cohen, Glachant and Söderberg (2014) in the U.K. and Morita, Matsumoto and Tasaki (2015) in Japan. households process energy efficiency information.…”

Section: Literature Surveymentioning

confidence: 99%

Consumer valuations of energy efficiency investments: The case of Vietnam's Air Conditioner market

Matsumoto

Omata

2017

Journal of Cleaner Production

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Typical consumers underestimate the benefits of future energy savings and underinvest in energy efficiency relative to the socially optimal level of energy efficiency. This phenomenon is called the energy-efficiency gap and has been widely studied in many developed countries. However, research on the energy-efficiency gap in developing countries remains very scant. In this study, we use sales data of air conditioners (ACs) in the Vietnamese market and conduct hedonic price analysis to examine how consumers in Vietnam value the energy efficiency of ACs. We find that the implicit discount rate in Vietnam's AC market exceeds 11.7%. This high implicit discount rate suggests that consumers in developing countries place much lower value on energy efficiency than consumers in developed countries, despite the fact that purchasing energy-efficient appliances offers the opportunity to save substantial amounts. Financial and technical support from developed countries are necessary to promote energy-efficient appliances in developing countries.

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The impact of energy prices on product innovation: Evidence from the UK refrigerator market

Cited by 18 publications

References 19 publications

The role of information for energy efficiency in the residential sector

The role of information for energy efficiency in the residential sector

Economic modelling of energy services: Rectifying misspecified energy demand functions

Consumer valuations of energy efficiency investments: The case of Vietnam's Air Conditioner market

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