Evaluating the role of energy efficiency labels in the prices of household appliances: the case of refrigerators

The study finds that A+ labeled refrigerators in the Basque Autonomous Community carry a price premium of 8.9% (approximately 60 euro) over A labeled models. This market premium is only one third of the potential lifetime energy savings (163 euro), illustrating the 'energy efficiency paradox'. The authors conclude that demand for the most energy-efficient refrigerators is highly sensitive to price changes, suggesting that subsidies of around 60 euro could be sufficient to encourage consumers to switch to high-efficiency models.

• In the refrigerator market of the Basque Autonomous Community, the price premium for a refrigerator with an A+ energy-efficiency label is 8.9% higher than one with an A label, which equates to approximately 58.5 euro based on an average price of 658 euro.
• The market price premium is significantly lower than the 'energy savings premium'; substituting an A labeled refrigerator for an A+ model results in total discounted lifetime savings of 163 euro, which represents 24% of the average price.
• The disparity between the actual market price premium and the potential lifetime energy savings is cited as an example of the 'energy efficiency paradox', where consumers do not invest in efficiency despite economic worthiness.
• Demand for refrigerators with the highest energy-efficiency label (A+) is more sensitive to price variations than the demand for refrigerators with lower energy efficiency.

APA

Galarraga, I., Heres, D. R., & González-Eguino, M. (2011). Evaluating the role of energy efficiency labels in the prices of household appliances: the case of refrigerators. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201104281036481875263076.pdf

Chicago

Galarraga, Ibon, David R. Heres, and Mikel González-Eguino. Evaluating the role of energy efficiency labels in the prices of household appliances: the case of refrigerators. Basque Centre for Climate Change, 2011. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201104281036481875263076.pdf.

Wikipedia

{{cite report |last1=Galarraga |first1=Ibon |last2=Heres |first2=David R. |last3=González-Eguino |first3=Mikel |title=Evaluating the role of energy efficiency labels in the prices of household appliances: the case of refrigerators |publisher=Basque Centre for Climate Change |date=April 2011 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201104281036481875263076.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{galarraga2011evaluating, author = {Galarraga, Ibon and Heres, David R. and González-Eguino, Mikel}, title = {{Evaluating the role of energy efficiency labels in the prices of household appliances: the case of refrigerators}}, institution = {Basque Centre for Climate Change}, year = {2011}, month = apr, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201104281036481875263076.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }