Efficiency Standards versus Negotiated Agreements in the Electrical Appliance Sector

Energy labelling and minimum efficiency performance standards have proved to be very effective in stimulating energy efficiency improvement in the domestic appliance sector. But standards suffer from long and often difficult implementation periods because of the resistance of the industrial sector. As a consequence, the question has been raised as to whether similar results could not be obtained more easily and at lower cost with voluntary agreements, which offer flexibility margins in the achievement of commitments. This paper analyses the specific advantages of voluntary agreements compared with efficiency standards in the domestic appliance sector. We conclude that voluntary agreements may be an effective instrument in this respect but in certain conditions. The alternative of regulatory measures must remain a credible, realistic threat if voluntary agreements are to have a really significant impact on performance improvement.