Benefits of Energy Efficiency Standards: The Case of Residential Refrigerators

Abstract

An integral part of the modern American household, refrigerators are ubiquitous. Characterized by their constant load profile, refrigerators account for a substantial part of residential energy demand. Improving energy efficiency standards for refrigerators can offer a sizeable demand reduction and therefore be a pivotal part of climate change mitigation strategy. This study quantifies the benefits of implementing energy efficiency standards for residential refrigerators by considering three policy scenarios. An in-house Monte-Carlo model is developed to replicate important considerations in the rulemaking process through which the Department of Energy (DOE) sets the conservation standards. Our results indicate that the existing standards for refrigerators can realize savings equal to the electricity consumption of about 400,000 average U.S. homes by 2025. While these savings are critical, the benefits of this conservation standard are inequitable. Our study provides insights into how the benefits are realized across all the consumers in the country and provides recommendations for improving the rulemaking process.