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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+.
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Document type: Research paper