Promoting Sales of Energy Efficient Household Appliances: Outcomes and Cost-Effectiveness of Rebate Programs

Thiess Buettner and Boryana Madzharova
Authors registered in the RePEc Author Service: Thiess Büttner

Journal of the Association of Environmental and Resource Economists, 2024, vol. 11, issue 5, 1275 - 1310

Abstract: This study examines rebate programs aiming at the replacement of household appliances with more efficient products in terms of energy consumption. Based on a large product-level data set for several European countries, the study examines their effects on unit sales and prices. The empirical identification strategy exploits the temporary implementation of the rebates in regional segments of the EU’s common market. The results for unit sales indicate that rebates can be an effective instrument for stimulating replacements with more energy efficient appliances. While the strength of the effects on unit sales proves sensitive to program design, we find only limited evidence of intertemporal substitution. Price effects are modest, implying that the subsidies are mostly passed on to consumers. Considering actual energy savings, we find a large variation across programs and identify key factors driving cost-effectiveness.

Date: 2024
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Working Paper: Promoting Sales of Energy Efficient Household Appliances: Outcomes and Cost Effectiveness of Rebate Programs (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jaerec:doi:10.1086/728610

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