Green Energy Labelling - Green Energy and Efficiency: An Economic Perspective - page 130

Green Energy Labelling

Josu Lucas and Ibon Galarraga

Abstract This chapter analyses the use of green labelling schemes to promote
energy ef

ciency along the world. Then it estimates the economic value that con-
sumers place on energy ef ciency (EE) labels for appliances in the Spanish market.

It uses the hedonic method to calculate the price premium paid in the market for that
attribute isolated from others. Besides, applies the Quantity-Based Demand System
(QBDS) to calculate the own and cross price elasticities of demand for both EE
appliances and others. These elasticities are useful for improving the design of
policies to promote EE. The chapter looks at three different appliances market in
Spain during 2012: washing machines, fridges and dishwashers.

Keywords Energy ef ciency Spain Labels Appliances

JEL codes C13 C20

1 Introduction

Energy ef ciency is not an easy issue. There are several barriers to investment in

energy ef es them as including energy

market failures, capital market failures, innovation market failures, information
problems and behavioural failures. Problems related to information deserve special
attention.
One way to promote energy ef

ciency projects. Gillingham et al. [ 19 ] identi

ciency is to solve information problems through
the use of energy labelling. There are different types of labels, such as endorsement
labelling, comparative labelling and only information labels. The case of comparative