Some Results and Proposition from a French. Experiment with Energy Labelling

Panel: Panel 2: Incentives and instruments to achive greater

Authors:
Michel Colombier, (ICE)
Philippe Menanteau, (IEPE)

Abstract

A model was developped for monitoring the sales of partner dealers. It gives a clearer understanding of dealer strategy, oportunities and barriers in market transformation.

A pilot operation aimed at accompanying the introduction of the new EU energy labelling regulation was carried out in France in 1995 - 96. The objective of the operation was to test the potential influence of the label on the dissemination of more efficient appliances. To complete the qualitative evaluation, a model was developed to follow actual sales based on sales data from the distributors.

Designed to measure the energy savings generated by the labelling campaign (and the cost of the kWh saved), the model also permitted an in-depth analysis of the various parameters of market transformation and the strategies of the various actors. It was thus demonstrated that the impact of labelling varied from one product category (large chest freezers, small refrigerators„) to another. This can be explained by large variations in the supply structures of the manufacturers, price levels, commercial strategies and consumer behaviours.

Results also underlined the necessity of an active participation of the retailers : success depends on whether they anticipate the market and create demand by introducing more efficient appliances. An unanticipated result was that the model permitted retailers to gain a clearer image of the advantages they could expect from this strategy.

Important lessons can be drawn for public policy. The analysis also permits a more productive dialogue between manufacturers and retailers. It can easily be replicated at national or European level using existing data bases.