Evaluating the Role of Energy Efficiency Labels: the Case of Dish Washers

The study finds that energy efficiency labels (specifically class A+) add a price premium of 15.6% to dishwashers in the Spanish market, amounting to approximately €80 based on an average price of €514. Using a Quantity Based Demand System (QBDS), the authors determine that demand for labelled appliances is significantly more elastic than for non-labelled ones, with own-price elasticity for labelled goods ranging from -1.2 to -13.2. The research suggests that while Spanish subsidy programmes (paying €50 to €90) may have slightly overestimated the necessary premium, they have been highly successful, as nearly all dishwashers currently sold in the market are labelled A or A+.

• The hedonic price estimation indicates that an energy efficiency label (class A+) increases the price of a dishwasher by 15.6% ceteris paribus.
• Based on an average dishwasher price of €514, the price premium for an energy efficient labelled product is approximately €80.
• Demand for labelled dishwashers is significantly more elastic than for non-labelled ones; for a non-labelled own-price elasticity between -0.5 and -2, the labelled demand elasticity ranges from -1.2 to -13.2.
• The Quantity Based Demand System (QBDS) is found to be a robust and less data-demanding alternative to the Linear Almost Ideal Demand System (LA/AIDS) for estimating elasticities of close substitutes.
• Spanish subsidy programmes for energy-efficient appliances, which provide between €50 and €90, have been extremely successful, resulting in nearly all market offerings being labelled A or A+.

APA

Galarraga, I., González-Eguino, M., & Markandya, A. (2010). Evaluating the Role of Energy Efficiency Labels: the Case of Dish Washers. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201005170136481147275297.pdf

Chicago

Galarraga, Ibon, Mikel González-Eguino, and Anil Markandya. Evaluating the Role of Energy Efficiency Labels: the Case of Dish Washers. Basque Centre for Climate Change, 2010. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201005170136481147275297.pdf.

Wikipedia

{{cite report |last1=Galarraga |first1=Ibon |last2=González-Eguino |first2=Mikel |last3=Markandya |first3=Anil |title=Evaluating the Role of Energy Efficiency Labels: the Case of Dish Washers |publisher=Basque Centre for Climate Change |date=May 2010 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201005170136481147275297.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{galarraga2010evaluating, author = {Galarraga, Ibon and González-Eguino, Mikel and Markandya, Anil}, title = {{Evaluating the Role of Energy Efficiency Labels: the Case of Dish Washers}}, institution = {Basque Centre for Climate Change}, year = {2010}, month = may, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201005170136481147275297.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }