Overcoming the Chicken and Egg Conundrum: Two Regional Successes in Addressing Market Barriers for Energy Efficient Lighting Technologies

Sara Van de Grift, Wisconsin Energy Conservation Corporation
Gabe Arnold, Efficiency Vermont
Liesel Whitney-Schulte, Franklin Energy
Dan Gaherty, Efficiency Vermont

Keywords

Abstract

Achieving market transformation involves many facets; one of the most important is product availability in the region. If targeted products are not readily available in the marketplace, market transformation efforts are unlikely to succeed.

Historically, efficiency programs have lacked the market power to influence nationwide manufacturers or retailers. In addition, short term programs, unstable funding and limited focus often made it difficult for efficiency programs to influence local market supply. This left programs facing the age old quagmire: which comes first, the product or the demand? Facing this chicken and egg conundrum, most programs have often decided to focus efforts on the two ends of the market chain, manufacturers and individual retailers. However, a critical layer of overlooked players exists in the middle of the chain — the regional buying groups, distributors and advertising groups. These mid-chain entities can make or break a technology’s adoption in the market and thus can make or break an efficiency program’s success.

This paper discusses two organizations’ experiences implementing unique and successful market based approaches to lighting. Efficiency Vermont and Wisconsin’s Focus on Energy have both developed programs that work with that critical layer of players in the middle of the market chain. Both programs have found that working with these “middle” players can impact regional product availability far more than can be achieved by working with individual retailers or with the national manufacturers. With this approach, both organizations have seen changes in availability, awareness and market acceptance of commercial lighting technologies.