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Energy efficient products: no easy choices

W. Wingstedt

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Abstract

The present status of the major-appliance industries, the basic problems of the government's efficiency programs, and its impact on manufacturers, distributors, and consumers, and the implementation, costs, and benefits of the program under varying assumptions are reviewed. Instability among major-appliance makers could be increased by sudden regulations making certain products undesirable or requiring heavy capital investment. Manufacturers may achieve efficiency goals by making technical improvements and deleting energy-intensive features or making them into user-operated options. The appliance-efficiency program will be realistic and flexible only if it considers the various sizes, costs, market shares, product mixes, and profitability of the members of this industry.

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What this paper is about

The present status of the major-appliance industries, the basic problems of the government's efficiency programs, and its impact on manufacturers, distributors, and consumers, and the implementation, costs, and benefits of the program under varying assumptions are reviewed. Instability among major-appliance makers could be increased by sudden regulations making certain products undesirable or requiring heavy capital investment. Manufacturers may achieve efficiency goals by making technical improvements and deleting energy-intensive features or making them into user-operated options. The appliance-efficiency program will be realistic and flexible only if it considers the various sizes, costs, market shares, product mixes, and profitability of the members of this industry.

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Available abstract

The present status of the major-appliance industries, the basic problems of the government's efficiency programs, and its impact on manufacturers, distributors, and consumers, and the implementation, costs, and benefits of the program under varying assumptions are reviewed. Instability among major-appliance makers could be increased by sudden regulations making certain products undesirable or requiring heavy capital investment. Manufacturers may achieve efficiency goals by making technical improvements and deleting energy-intensive features or making them into user-operated options. The appliance-efficiency program will be realistic and flexible only if it considers the various sizes, costs, market shares, product mixes, and profitability of the members of this industry.

Key concepts: Profitability index, Investment (military), Efficient energy use, Business, Government (linguistics), Industrial organization, Product (mathematics), Capital investment

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