Evaluating the role of energy efficiency labels: the case of Dish Washers

The document investigates the economic impact of energy efficiency labels on the dishwasher market in Spain, specifically within the Basque Autonomous Community. Using a hedonic approach, the authors find that an A+ energy label increases the final price of a dishwasher by 15.6%, which equates to approximately €80 based on an average price of €514. This finding is compared to a government subsidy programme that provides between €50 and €85 to encourage the purchase of high-efficiency appliances. The study also employs the Quantity Based Demand System (QBDS) and the Linear Almost Ideal Demand System (LA/AIDS) to determine price elasticities, concluding that demand for labelled appliances is significantly more elastic than for non-labelled ones. Specifically, while own price elasticity for non-labelled dishwashers ranges from -0.5 to -2, it varies from -1.2 to -13.2 for labelled appliances. The authors suggest the QBDS model is a robust, less data-demanding alternative for analyzing close substitutes in energy efficiency policy.

• In the Spanish dishwasher market, the presence of an A+ energy efficiency label increases the final price of the product by 15.6% ceteris paribus.
• Based on an average dishwasher price of €514, the price premium for an A+ energy efficient product is approximately €80.
• The demand for energy-efficient (labelled) dishwashers is significantly more elastic than the demand for non-labelled dishwashers; for a non-labelled own price elasticity range of -0.5 to -2, the labelled range is -1.2 to -13.2.
• The Quantity Based Demand System (QBDS) model provides reliable demand elasticity estimates and is easier to handle and requires less data than the Linear Almost Ideal Demand System (LA/AIDS) model.

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/201101240112281285243836.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/201101240112281285243836.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=September 2010 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201101240112281285243836.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 = sep, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201101240112281285243836.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }