The value of Standards and Labelling: an international cost-benefit analysis tool for Standards & Labelling programs with results for Central American countries

Robert D. Van Buskirk, Michael A. McNeil, and Virginie E. Letschert, Lawrence Berkeley National Laboratory

Keywords

Standards and Labelling, Appliance, Refrigerator, Policy Evaluation

Abstract

We describe a cost-benefit spreadsheet analysis tool that provides an evaluation of the net impacts of an appliance standards and labelling (S&L) program. The tool is designed to provide a rough estimate at very low cost to local analysts, while allowing for a more accurate evaluation when detailed local data are available. The methodology takes a bottom-up engineering approach, beginning with appliance-specific engineering parameters relating efficiency improvement and incremental costs associated with specific design technologies. Efficiency improvement afforded by each potential policy option is combined with local appliance use patterns to estimate average annual energy consumption for each appliance. This information is combined with appliance lifetime data and local energy prices to provide a life cycle cost impact assessment at the household level. In addition to household level impacts, the analysis tool forecasts future appliance sales, in order to calculate potential energy savings, consumer financial impacts and carbon emissions reductions at the national level.

In order to demonstrate the features of the policy model employed, this poster presents a regional analysis based on the most recent publicly available appliance data. In particular, a set of developing countries in Central America were chosen as an example. Taken as a whole, the Central American results demonstrate the general level of benefit which could be afforded in these countries. Comparison between the countries reveals the key parameters determining the benefit a given country can expect from a standards program.