Effectiveness of Energy Efficiency Standards and Labeling Requirements: The Case of Air Conditioners in Japan, Thailand, China and India

27 Pages Posted: 30 Apr 2015

See all articles by Michikazu Kojima

Michikazu Kojima

Institute of Developing Economies (IDE-JETRO)

Kensuke Kubo

JFTC & CPRC (Japan Fair Trade Commission)

Wakana Kusaka

Institute of Developing Economies (IDE-JETRO)

Mariko Watanabe

Gakushuin University

Date Written: January 22, 2015

Abstract

This chapter evaluates whether standards and labeling programs aimed at improving the energy efficiency of electrical appliances have been successful at achieving their goals. Standards and labeling programs work to reduce energy consumption by (a) influencing consumers’ choice of appliance and (b) inducing manufacturers to improve the energy efficiency of their products. In Most middle- and high-income countries first introduced mandatory minimum energy performance standards (MEPS) and/or multi-grade labeling and then added high energy performance standards (HEPS) that upgraded those standards. Analysis of product-level data for the air conditioner markets in Japan, Thailand, India and China yielded the following findings: (1) Standards and labeling programs appear to be effective at changing energy efficiency levels in the marketplace. There has been a clear improvement in the energy efficiency of air conditioners, measured by such indexes as coefficient of performance (COP), energy efficiency ratio (EER) and annual performance factor (APF) in Japan. (2) More energy-efficient products are priced higher in Japan and India. (3) Japan succeeded in reducing electricity consumption from air conditioners by one-half, but neither Thailand nor China succeeded in curbing electricity consumption. Appropriate fine-tuning of policy instruments is necessary to effectively reduce electricity use by air conditioners. An example is the introduction of a rule-based mechanism to revise minimum efficiency standards regularly. Cross-country harmonization of regulatory methods, such as methods to measure energy efficiency and revise efficiency standards, may also be beneficial.

Keywords: Energy Efficiency Standard and Label, Japan, Thailand, India, China

JEL Classification: L11, M21, L63, O31, Q41

Suggested Citation

Kojima, Michikazu and Kubo, Kensuke and Kusaka, Wakana and Watanabe, Mariko, Effectiveness of Energy Efficiency Standards and Labeling Requirements: The Case of Air Conditioners in Japan, Thailand, China and India (January 22, 2015). Available at SSRN: https://ssrn.com/abstract=2600068 or http://dx.doi.org/10.2139/ssrn.2600068

Michikazu Kojima

Institute of Developing Economies (IDE-JETRO) ( email )

3-2-2 Wakaba, Mihama-ku
Chiba, 261-8545
Japan

Kensuke Kubo

JFTC & CPRC (Japan Fair Trade Commission) ( email )

Tokyo
Japan

Wakana Kusaka

Institute of Developing Economies (IDE-JETRO) ( email )

3-2-2 Wakaba, Mihama-ku
Chiba, 261-8545
Japan

Mariko Watanabe (Contact Author)

Gakushuin University ( email )

1-5-1 Mejiro, Toshima-ku
Tokyo 171-8588
Japan
+81432771914 (Phone)
432771914 (Fax)

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