Effects of Appliance Standards on Product Price and Attributes: An Hedonic Pricing Model.

The tradeoffs between energy efficiency gains and product attributes as a result of the implementation of federal energy performance standards are examined. Hedonic pricing relationships are used to estimate changes in standardized marginal attribute prices for freezer volumes, food volumes, and annual energy consumption for refrigerators and refrigerator/freezers. From 1987/88 to 1993, energy performance standards significantly reduced energy consumption and at the same time, a historical decline in "quality-adjusted" real prices continued without disruption and consumers appeared to experience a welfare gain as a result of improving levels of energy efficiency. Copyright 1997 by Kluwer Academic Publishers