Effectiveness of China’s Labeling and Incentive Programs for Household Energy Conservation and Policy Implications

Zhuangai Li,Xia Cao

doi:10.3390/su13041923

Abstract

With incomplete information about the potential benefits and costs of energy-using durables, households may be unwilling to invest in products that are more energy-efficient but also more expensive in purchase decisions. To deal with this problem, labeling policy has been developed to guide customers’ energy consumption decisions by providing understandable information to evaluate the energy efficiency of products. Over the last 20 years, China has implemented a series of mandatory and voluntary energy labeling and incentive policies to reduce energy use and improve the energy efficiency of durable goods in dwellings. This study has employed empirical survey data from the Chinese General Social Survey to study the implementation effectiveness of these policies and explore demographic factors behind consumer investments in energy-saving durables by using the logistic regression model. Statistical results show that energy efficiency labeling, incentive programs, education levels, and regional differences of customers appear to be strong predictors for investing in energy-efficient air conditioners and washing machines. House size is a decisive factor in driving consumers to choose energy-saving air conditioners. In light of the above results, the study suggests improved policy for motivating consumers to purchase energy-efficient appliances in dwellings.

Highlights

As the world’s largest emitter, China emits nearly 10 billion tons of CO2 each year, accounting for 30% of global emissions [1]
Based on an analysis of the influencing factors on the purchasing of energy-efficient appliances in the residential sector, we have found that energy efficiency labels, incentive programs, education level, and regional differences of customers are strong predictors of investing in energy-efficient air conditioners and washing machines
The odds ratio (since exp (0.455)) of the incentive program is 1.576, which means the probability of investing in energy-efficient air conditioners will be 1.576 times larger by increasing the subsidy of one unit

Summary

Introduction

As the world’s largest emitter, China emits nearly 10 billion tons of CO2 each year, accounting for 30% of global emissions [1]. China’s households, major contributors to global warming, are responsible for about 12.8% of total energy demand [2]. With the constant and rapid economic development and improvement of living standards, the total number of household appliances and other energy-consuming products has increased rapidly in the last 20 years. Residential energy saving has become a priority in China. Understanding the energy efficiency policies to reduce residential energy consumption is an essential part of mitigating climate change, such as, most prominently, global warming [4]. A growing body of evidence in academic literature has demonstrated that measures targeting consumer behavior offer a cost-effective approach towards energy savings [8,9,10]. The Energy Efficiency Directive in the European Union provides measures to accelerate energy efficiency improvements by changing societal and individual behaviors, which is very successful with respect to improving energy efficiency [11]

Results

Discussion

Conclusion