Market Transformation: What is Happening and Why?

Ken Tiedemann and Iris Sulyma, BC Hydro
Jack Habart, Habart and Associates

Keywords

Abstract

In recent years considerable attention has been placed on market transformation for energy using technologies. A number of studies have pursued such issues as the definition of market transformation, the nature and objectives of market transformation programs and indicators of market transformation. The purpose of this paper is to present and apply an econometric approach to the evaluation of market transformation programs which focuses on the estimation of program impacts on prices and quantities of energy efficient products. The empirical work focuses on two case studies of energy efficient lighting in Thailand. These studies used annual time series information on sales and prices of lighting products in Thailand. There are three main conclusions. First, the Compact Fluorescent Lamp Program had a significant impact on the sales and prices of compact fluorescent lamps in Thailand for the program period examined. Second, the Energy Efficient Fluorescent Tube Program had a significant impact on sales and prices of T8 tubes. Third, modeling the program response of sales and prices of lighting products in Thailand using regression analysis was generally successful in that the regressions have good explanatory power and the majority of coefficients have plausible and statistically significant test-statistics. Fourth, further research to refine and apply the econometric approach to the analysis of market transformation programs appears warranted.