Efficient lighting programs in Europe: Cost effectiveness, consumer response, and market dynamics

Since 1987 more than 50 utility-sponsored programs in 11 European countries have offered financial incentives to promote energy-efficient compact fluorescent lamps (CFLs). Roughly 7.4 million households were eligible for the programs and together they acquired about 2.5 million CFLs. Data from 40 of the programs show that the average societal cost of conserved energy is 2.1 cents/kWh, including 0.3 cents/kWh for program administration and marketing, far less than the cost of building and operating new electric power plants. The highest penetration rates and the most cost-effective programs result when utility companies pay a high proportion (or all) of the cost of the efficient lamps. Data on lamp choice, placement, and utilization are presented along with a characterization of participants and non-participants. Survey results show that lamp prices can be a more important influence on consumers' choice of efficient lamps than the price of electricity. Non-economic factors such as environmental protection are as important as economic factors in determining participation. Market barriers, such as product shortages, are discussed along with appropriate remedies. Finally, differences between the European and the U.S. experiences are outlined.