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Introduction to special issue devoted to appliance and lighting standards
ELSEVIER
Energy
and Buildings
26 ( 1997)
l-3
Introduction to special issue devoted to appliance and lighting standards James E. McMahon *, Isaac Turiel ’ Lawrence
Berkeley
National
Received
Laboratory,
10 December
Universiry
1996; accepted
1. Why a special issue? Appliance and lighting standards have more than a twentyyear history, originating (in reaction to oil price shocks) in Europe and the US, and then in many regions of the world. In spite of the social, economic and environmental significance of appliance and lighting standards, the extensive history of these standards is largely available in voluminous legislative and technical documents, with only an occasional journal article or conference paper accessible to a wider audience. In this special issue, we are excited to bring together an international collection of summary documentation from a range of perspectives, presented by some of the key participants in this history. The authors share lessons to date in the areas of engineering, economics and policy analysis.
2. What are appliance standards? Appliance standards are a set of procedures and regulations which prescribe the energy performance of manufactured products, sometimes prohibiting the manufacture of products less energy efficient than the minimum standard. The term ‘standard’ encompasses two possible meanings. We separate the two uses of that term as follows: (i) a well-defined protocol (or laboratory test procedure) by which one can obtain a relative ranking of energy efficiency among alternative technological designs providing an energy-consuming service; and (ii) a norm (target or mandatory limit) of energy efficiency or energy performance based upon the protocol.
3. Why are appliance standards
important?
Appliances-here broadly defined to include heating, cooling and lighting, as well as refrigerators, clothes washers and * Corresponding author. ’ We wish to thank Stephen Wiel and Alan Meier for their review of this introduction and all of the articles in this special issue. We incorporated many of their suggestions. Published
by Elsevier
PIISO378-7788(97)00016-9
Science S.A.
of California,
Berkeley,
11 December
CA 94720,
USA
1996
other household equipment-account for most of the energy consumption in buildings, and buildings account for much of electricity and natural gas consumption. In 1990, buildings (residential and services/commercial) used about 41% of electricity generated world-wide, and 37% of total primary energy [ 1] . In industrialized countries, energy consumption by appliances is already large, and in developing countries, such energy consumption is growing rapidly. The increase in electricity demand in developing countries, significantly from the use of appliances in buildings, is anticipated to require an average annual investment for new generation and distribution capacity from 1995 to 2010 of $97 billion [ 21. Energy cost is not the only economic consideration. About $67 billion was spent in 1992 on ‘white goods’ (refrigerators, freezers, cooking appliances, microwave ovens, clothes washers, clothes dryers and dishwashers), and the expenditures are projected to grow to $77 billion per year by 2000 [3]. The world air-conditioning and refrigeration market, valued at $40-45 billion, is expected to grow to $50 billion by 2005 [ 41. Appliance standards have significant economic impact, directly affecting manufacturers, large populations of consumers and-indirectly-energy suppliers. Appliance standards have influenced manufacturers to invest more in designs using less energy, which in turn reduces the need for new energy supplies. For electricity, in particular, appliance standards can reduce the need for new capacity, in part because air conditioners exert disproportional influence on peak power requirements. Not only have appliance energy standards already resulted in significant economic benefits, the potential for further savings is huge. Several estimates have been made of the energy savings potential from efficiency improvements in buildings worldwide. A study commissioned by the WorldEnergy Congress (WEC) based on IPCC scenarios shows potential reductions in energy demand in buildings in the OECD countries of 6-16% and in countries with economies in transition and developing countries of 2544% when comparing aggressive efficiency scenarios to business-as-usual scenarios [ 51. Much of this savings potential is from appliances, equipment, and lighting and much of that is achievable through energy standards.
2
J.E. McMahon,
I. Turiel/Energy
Appliance standards also noticeably mitigate environmental emissions of carbon dioxide, sulfur dioxide and nitrogen oxides associated with burning fuels to provide energy, For example, the current US appliance standards are expected to prevent 107 million tons of carbon dioxide emissions (equivalent of 2% of US carbon emissions), prevent 286 thousand tons of nitrogen oxide emissions, and allow 385 thousand tons of sulfur dioxide emissions to be banked or traded in the year 2000 alone. In 1995, buildings account for about 2530% of global energy-related carbon dioxide emissions, contributing lO-12% of the increasing net radiative forcing that is inducing global warming. The energy savings projected by WEC in its aggressive efficiency scenario would cut carbon emissions in 2000 dramatically from its business-as-usual projection [ 61. In the context of policies for meeting international agreements on carbon emissions, international interest in appliance labels and standards and their harmonization is increasing.
4. What are the key issues? Many developing and developed countries around the world are currently considering whether to introduce appliance standards, are in the process of introducing standards, or are undertaking modifications to existing standards. Important questions raised in the often contentious debates occurring in each of these countries include: How would the standards affect the availability and quality of consumer products? What would be the impact (costs and benefits) of standards on consumers, manufacturers, national economies and the environment? Under what circumstances is government intervention in the marketplace warranted? How should the process of establishing standards be conducted? For example, some argue that a government imposing standards interferes with the operation of the free market, and is in conflict with the current worldwide trend toward increased reliance on market forces. Others argue that a government imposing standards merely modifies the rules of the competition to the benefit of all, does nothing to reduce competition, and is totally in harmony with a nation’s reliance on market forces. This special edition does not resolve these issues. Importantly, it provides a factual foundation of the history of appliance energy standards to date to allow readers to engage in meaningful discussions towards their resolution. With worldwide interest in appliance standards growing rapidly, Turiel’s article [ 71 offers a snapshot of the current status, listing those countries with standards and those about to adopt standards. It shows that mandatory energy efficiency standards are in place for some appliances in Canada, China,
and Buildings
26 (1997)
1-3
Korea, Mexico, the Philippines, and the United States; standards for refrigerator/freezers and water heaters will take effect in Australia in 1999; standards for refrigerator/freezers will take effect in the European Union in 1999; and voluntary energy efficiency standards are in place for refrigerators in India and Brazil and air conditioners in Japan and India. The next three articles [ 8-101 deal with aspects of appliance standards that must be confronted in all countries. Appliance efficiency standards directly affect the way appliance manufacturers must design and build appliances. Therefore, it is essential to understand the view and experiences of manufacturers who have already faced standards. The article by Anderson and Mclnemey [ 81 gives two manufacturers’ perspectives of appliance standards when faced with the multiple challenges of reducing energy use and phasing out CFCs while satisfying consumer’s demands for amenities and low prices. All appliance standards rely on energy testing protocols to ensure a fair and consistent measurement of energy use. Meier and Hill [ 91 describe some of the energy testing procedures and the testing problems for new appliances with microprocessor controls where the software will become nearly as important as the hardware in determining energy performance. There are several approaches to establishing efficiency standards for appliances. An article by Turiel et al. [ 101 describes and compares the different methodologies used to set standards. For a country considering developing standards, this article describes the choice between a statistical approach to setting standards and an approach relying on product engineering and economic analysis. However, each country’s experience with appliance standards is different and adds insights to the broader issues. Separate articles for Europe, Japan, Australia, Canada and California [ 1l-151 explain the history, the process of adoption, and the details of standards in those regions. Two further articles describe the impacts of energy savings. It is essential to verify that the efficiency improvements do indeed result in reduced energy use. The US has maintained a continuous process for establishing standards since 1978. Geller’s [ 161 article estimates the national impacts of the US standards, both with respect to energy savings and avoided costs. Meier [ 171 summarizes field measurements from several countries to show that energy savings do indeed occur. As indicated earlier, the status of appliance efficiency standards is constantly changing. Nadel [ 181, in the final article of this edition, discusses the future of standards, test procedures, and energy labels. References [ l] Intergovernmental Panel on Climate Change, IPCC Technical Paper on Technologies, Policies and Measures for Mitigating Climate Change, IPCC, Geneva, 1996. [2] Resource Dynamics Corporation, Vienna, VA, USA, Financing worldwide electric power: can capital markets do the job? FinalReport, April, 1996. [ 31 The World Marker for White Goods, Euromonitor, London, UK, 1994.
J.E. McMahon,
I. Turiel/Energy
[4] Timothy Somheil, An atmosphere of growth, Appliance , November, 1996, p. 32. [ 51 M.D. Levine, L. Price, N. Martin and E. Worrell, Energy and energy efficiency in buildings: a global analysis, Proc. 1996ACEEE Summer Study on Energy Eficiency in Buildings Proceedings, Vol. 9, Energy and Environmental Policy, pp. 9.141-9.157. [6] S. Wiel, N. Martin, M.D. Levine, L. Price and J. Sathaye, The role of building energy efficiency in managing atmospheric carbon dioxide, Proc.
1996
ACEEE
Summer
Study
on Energy
EfJiciency
in Buildings,
Vol. 9, Energy and Environmental Policy, pp. 9.217-9.228. [7] I. Turiel, Present status of residential appliance energy efficiency standards-an international review, Energy Build., 26 ( 1997) 5. [ 81 E. McInemey and V. Anderson, Appliance manufacturers’ perspective on energy standards, Energy Build., 26 (1997) 17. [ 91 A.K. Meier and J.E. Hill, Energy test procedures for appliances, Energy Build., 26 (1997) 23. [lo] I. Turiel, T. Chan and J.E. McMahon, Theory and methodology of appliance standards, Energy Build., 26 (1997) 35.
and Buildings
26 (1997)
l-3
3
[ 1 I] P. Waide, B. Lebot and M. Hinnell, Appliance energy standards in Europe, Energy Build., 26 ( 1997) 45. [ 121 H. Nakagami and B. Litt, Appliance standards in Japan, Energy Build., 26(1997)69.
[ 131 L. Harrington and G. Wilkenfeld, Appliance efficiency programs in Australia: labelling and standards, Energy Build., 26 ( 1997) 81. [ 141 J.-P. des Rosiers, Regulating appliance energy efficiency in Canadasome similarities and differences with the US, Energy Build., 26 (1997) 89. [ 151 M. Martin, The process of setting appliance standards, Energy Build., 26(1997)95.
[ 161 H. Geller, National appliance efficiency Standards in the USA: costeffective Federal regulations, The future of standards, Energy Build., 26(1997) 101. [ 171 A.K. Meier, Observed energy savings from appliance efficiency standards, Energy Build., 26 (1997) 111. [ 181 S. Nadel, The future of standards, Energy Build., 26 ( 1997) 119.
Energy
and Buildings
26 ( 1997)
l-3
Introduction to special issue devoted to appliance and lighting standards James E. McMahon *, Isaac Turiel ’ Lawrence
Berkeley
National
Received
Laboratory,
10 December
Universiry
1996; accepted
1. Why a special issue? Appliance and lighting standards have more than a twentyyear history, originating (in reaction to oil price shocks) in Europe and the US, and then in many regions of the world. In spite of the social, economic and environmental significance of appliance and lighting standards, the extensive history of these standards is largely available in voluminous legislative and technical documents, with only an occasional journal article or conference paper accessible to a wider audience. In this special issue, we are excited to bring together an international collection of summary documentation from a range of perspectives, presented by some of the key participants in this history. The authors share lessons to date in the areas of engineering, economics and policy analysis.
2. What are appliance standards? Appliance standards are a set of procedures and regulations which prescribe the energy performance of manufactured products, sometimes prohibiting the manufacture of products less energy efficient than the minimum standard. The term ‘standard’ encompasses two possible meanings. We separate the two uses of that term as follows: (i) a well-defined protocol (or laboratory test procedure) by which one can obtain a relative ranking of energy efficiency among alternative technological designs providing an energy-consuming service; and (ii) a norm (target or mandatory limit) of energy efficiency or energy performance based upon the protocol.
3. Why are appliance standards
important?
Appliances-here broadly defined to include heating, cooling and lighting, as well as refrigerators, clothes washers and * Corresponding author. ’ We wish to thank Stephen Wiel and Alan Meier for their review of this introduction and all of the articles in this special issue. We incorporated many of their suggestions. Published
by Elsevier
PIISO378-7788(97)00016-9
Science S.A.
of California,
Berkeley,
11 December
CA 94720,
USA
1996
other household equipment-account for most of the energy consumption in buildings, and buildings account for much of electricity and natural gas consumption. In 1990, buildings (residential and services/commercial) used about 41% of electricity generated world-wide, and 37% of total primary energy [ 1] . In industrialized countries, energy consumption by appliances is already large, and in developing countries, such energy consumption is growing rapidly. The increase in electricity demand in developing countries, significantly from the use of appliances in buildings, is anticipated to require an average annual investment for new generation and distribution capacity from 1995 to 2010 of $97 billion [ 21. Energy cost is not the only economic consideration. About $67 billion was spent in 1992 on ‘white goods’ (refrigerators, freezers, cooking appliances, microwave ovens, clothes washers, clothes dryers and dishwashers), and the expenditures are projected to grow to $77 billion per year by 2000 [3]. The world air-conditioning and refrigeration market, valued at $40-45 billion, is expected to grow to $50 billion by 2005 [ 41. Appliance standards have significant economic impact, directly affecting manufacturers, large populations of consumers and-indirectly-energy suppliers. Appliance standards have influenced manufacturers to invest more in designs using less energy, which in turn reduces the need for new energy supplies. For electricity, in particular, appliance standards can reduce the need for new capacity, in part because air conditioners exert disproportional influence on peak power requirements. Not only have appliance energy standards already resulted in significant economic benefits, the potential for further savings is huge. Several estimates have been made of the energy savings potential from efficiency improvements in buildings worldwide. A study commissioned by the WorldEnergy Congress (WEC) based on IPCC scenarios shows potential reductions in energy demand in buildings in the OECD countries of 6-16% and in countries with economies in transition and developing countries of 2544% when comparing aggressive efficiency scenarios to business-as-usual scenarios [ 51. Much of this savings potential is from appliances, equipment, and lighting and much of that is achievable through energy standards.
2
J.E. McMahon,
I. Turiel/Energy
Appliance standards also noticeably mitigate environmental emissions of carbon dioxide, sulfur dioxide and nitrogen oxides associated with burning fuels to provide energy, For example, the current US appliance standards are expected to prevent 107 million tons of carbon dioxide emissions (equivalent of 2% of US carbon emissions), prevent 286 thousand tons of nitrogen oxide emissions, and allow 385 thousand tons of sulfur dioxide emissions to be banked or traded in the year 2000 alone. In 1995, buildings account for about 2530% of global energy-related carbon dioxide emissions, contributing lO-12% of the increasing net radiative forcing that is inducing global warming. The energy savings projected by WEC in its aggressive efficiency scenario would cut carbon emissions in 2000 dramatically from its business-as-usual projection [ 61. In the context of policies for meeting international agreements on carbon emissions, international interest in appliance labels and standards and their harmonization is increasing.
4. What are the key issues? Many developing and developed countries around the world are currently considering whether to introduce appliance standards, are in the process of introducing standards, or are undertaking modifications to existing standards. Important questions raised in the often contentious debates occurring in each of these countries include: How would the standards affect the availability and quality of consumer products? What would be the impact (costs and benefits) of standards on consumers, manufacturers, national economies and the environment? Under what circumstances is government intervention in the marketplace warranted? How should the process of establishing standards be conducted? For example, some argue that a government imposing standards interferes with the operation of the free market, and is in conflict with the current worldwide trend toward increased reliance on market forces. Others argue that a government imposing standards merely modifies the rules of the competition to the benefit of all, does nothing to reduce competition, and is totally in harmony with a nation’s reliance on market forces. This special edition does not resolve these issues. Importantly, it provides a factual foundation of the history of appliance energy standards to date to allow readers to engage in meaningful discussions towards their resolution. With worldwide interest in appliance standards growing rapidly, Turiel’s article [ 71 offers a snapshot of the current status, listing those countries with standards and those about to adopt standards. It shows that mandatory energy efficiency standards are in place for some appliances in Canada, China,
and Buildings
26 (1997)
1-3
Korea, Mexico, the Philippines, and the United States; standards for refrigerator/freezers and water heaters will take effect in Australia in 1999; standards for refrigerator/freezers will take effect in the European Union in 1999; and voluntary energy efficiency standards are in place for refrigerators in India and Brazil and air conditioners in Japan and India. The next three articles [ 8-101 deal with aspects of appliance standards that must be confronted in all countries. Appliance efficiency standards directly affect the way appliance manufacturers must design and build appliances. Therefore, it is essential to understand the view and experiences of manufacturers who have already faced standards. The article by Anderson and Mclnemey [ 81 gives two manufacturers’ perspectives of appliance standards when faced with the multiple challenges of reducing energy use and phasing out CFCs while satisfying consumer’s demands for amenities and low prices. All appliance standards rely on energy testing protocols to ensure a fair and consistent measurement of energy use. Meier and Hill [ 91 describe some of the energy testing procedures and the testing problems for new appliances with microprocessor controls where the software will become nearly as important as the hardware in determining energy performance. There are several approaches to establishing efficiency standards for appliances. An article by Turiel et al. [ 101 describes and compares the different methodologies used to set standards. For a country considering developing standards, this article describes the choice between a statistical approach to setting standards and an approach relying on product engineering and economic analysis. However, each country’s experience with appliance standards is different and adds insights to the broader issues. Separate articles for Europe, Japan, Australia, Canada and California [ 1l-151 explain the history, the process of adoption, and the details of standards in those regions. Two further articles describe the impacts of energy savings. It is essential to verify that the efficiency improvements do indeed result in reduced energy use. The US has maintained a continuous process for establishing standards since 1978. Geller’s [ 161 article estimates the national impacts of the US standards, both with respect to energy savings and avoided costs. Meier [ 171 summarizes field measurements from several countries to show that energy savings do indeed occur. As indicated earlier, the status of appliance efficiency standards is constantly changing. Nadel [ 181, in the final article of this edition, discusses the future of standards, test procedures, and energy labels. References [ l] Intergovernmental Panel on Climate Change, IPCC Technical Paper on Technologies, Policies and Measures for Mitigating Climate Change, IPCC, Geneva, 1996. [2] Resource Dynamics Corporation, Vienna, VA, USA, Financing worldwide electric power: can capital markets do the job? FinalReport, April, 1996. [ 31 The World Marker for White Goods, Euromonitor, London, UK, 1994.
J.E. McMahon,
I. Turiel/Energy
[4] Timothy Somheil, An atmosphere of growth, Appliance , November, 1996, p. 32. [ 51 M.D. Levine, L. Price, N. Martin and E. Worrell, Energy and energy efficiency in buildings: a global analysis, Proc. 1996ACEEE Summer Study on Energy Eficiency in Buildings Proceedings, Vol. 9, Energy and Environmental Policy, pp. 9.141-9.157. [6] S. Wiel, N. Martin, M.D. Levine, L. Price and J. Sathaye, The role of building energy efficiency in managing atmospheric carbon dioxide, Proc.
1996
ACEEE
Summer
Study
on Energy
EfJiciency
in Buildings,
Vol. 9, Energy and Environmental Policy, pp. 9.217-9.228. [7] I. Turiel, Present status of residential appliance energy efficiency standards-an international review, Energy Build., 26 ( 1997) 5. [ 81 E. McInemey and V. Anderson, Appliance manufacturers’ perspective on energy standards, Energy Build., 26 (1997) 17. [ 91 A.K. Meier and J.E. Hill, Energy test procedures for appliances, Energy Build., 26 (1997) 23. [lo] I. Turiel, T. Chan and J.E. McMahon, Theory and methodology of appliance standards, Energy Build., 26 (1997) 35.
and Buildings
26 (1997)
l-3
3
[ 1 I] P. Waide, B. Lebot and M. Hinnell, Appliance energy standards in Europe, Energy Build., 26 ( 1997) 45. [ 121 H. Nakagami and B. Litt, Appliance standards in Japan, Energy Build., 26(1997)69.
[ 131 L. Harrington and G. Wilkenfeld, Appliance efficiency programs in Australia: labelling and standards, Energy Build., 26 ( 1997) 81. [ 141 J.-P. des Rosiers, Regulating appliance energy efficiency in Canadasome similarities and differences with the US, Energy Build., 26 (1997) 89. [ 151 M. Martin, The process of setting appliance standards, Energy Build., 26(1997)95.
[ 161 H. Geller, National appliance efficiency Standards in the USA: costeffective Federal regulations, The future of standards, Energy Build., 26(1997) 101. [ 171 A.K. Meier, Observed energy savings from appliance efficiency standards, Energy Build., 26 (1997) 111. [ 181 S. Nadel, The future of standards, Energy Build., 26 ( 1997) 119.