Estimating customer utility of energy efficiency standards for refrigerators Export

@article{citeulike:276675, abstract = {A frequent argument against efficiency standards is that they prohibit products that represent optimal choices for customers and thus lead to reduced customer utility. In this paper we propose and test a method to estimate such losses. Conjoint analysis is used to estimate utility functions for individuals that have recently bought a refrigerator. The utility functions are used to calculate the individuals' utility of all the refrigerators available in the market. Revealed utility losses due to non-optimal choices by the customers seem consistent with other data on customer behaviour. The same utility estimates are used to find losses due to energy efficiency standards that remove products from the market. Contrary to previous claims, we find that efficiency standards can lead to increased utility for the average customer. This is possible because customers do not make perfect choices in the first place.}, author = {Moxnes, Erling}, citeulike-article-id = {276675}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/S0167-4870(03)00072-2}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V8H-4979M5C-2/2/e31ff5626dff73c15984becede90e8cd}, doi = {10.1016/S0167-4870(03)00072-2}, journal = {Journal of Economic Psychology}, keywords = {economics, energy, environment, house, preference, psychology}, month = {December}, number = {6}, pages = {707--724}, posted-at = {2005-08-08 07:03:27}, priority = {5}, title = {Estimating customer utility of energy efficiency standards for refrigerators}, url = {http://dx.doi.org/10.1016/S0167-4870(03)00072-2}, volume = {25}, year = {2004} }

TY - JOUR ID - citeulike:276675 L3 - citeulike-article-id:276675 N2 - A frequent argument against efficiency standards is that they prohibit products that represent optimal choices for customers and thus lead to reduced customer utility. In this paper we propose and test a method to estimate such losses. Conjoint analysis is used to estimate utility functions for individuals that have recently bought a refrigerator. The utility functions are used to calculate the individuals' utility of all the refrigerators available in the market. Revealed utility losses due to non-optimal choices by the customers seem consistent with other data on customer behaviour. The same utility estimates are used to find losses due to energy efficiency standards that remove products from the market. Contrary to previous claims, we find that efficiency standards can lead to increased utility for the average customer. This is possible because customers do not make perfect choices in the first place. IS - 6 JF - Journal of Economic Psychology EP - 724 TI - Estimating customer utility of energy efficiency standards for refrigerators VL - 25 SP - 707 KW - economics KW - energy KW - environment KW - house KW - preference KW - psychology AU - Moxnes, Erling PY - 2004/12// UR - http://dx.doi.org/10.1016/S0167-4870(03)00072-2 ER -