Search

Energy Star (ES) appliances are required to provide the same features and performance as their unlabeled counterparts, but do so with increased efficiency. However, the expected energy savings from such labeling may not be as great as expected. This paper contributes to previous research on ES labeling by examining household behavior and electricity consumption. Using two different household surveys on energy use, we provide a first attempt to estimate the impact of ES appliance ownership on actual household electricity usage. The results show a significant effect for ES refrigerators reducing electricity use, while the analysis for ES televisions suggests an increase in electricity usage by LCD TV owners. The findings highlight the need for more research on household energy consumption and the efficacy of the ES appliance program.

A major concern with electricity market restructuring has been the possibility that fuel price volatility may leak into electricity prices. This view is credible if electricity price – fuel costs relation is stronger in restructured than in non-restructured states. We examine the validity of this view using panel data on for industrial, residential and commercial sectors in US states. The analysis accounts for cross-sectional dependency, cross-state heterogeneity, and interdependency of state fuel markets. The common correlated effects mean-group estimates suggest that (1) coal and natural gas costs Granger-cause electricity prices for industrial and commercial customers in both non-restructured and restructured states; (2) both fuel costs also Granger-cause electricity prices for residential customers in non-restructured states but only natural gas costs cause electricity prices in restructured states; (3) the long-run impacts of fuel costs on electricity prices are higher in non-restructured than restructured states; and (4) electricity prices exhibit lower persistence in non-restructured than in restructured states. These results are do not support the view of higher integration between input costs and electricity prices in restructured markets. Policymakers should be aware of the differences in electricity price response in alternative market structures when implementing new federal policies.