Energy efficiency standards and labels offer the potential for carbon reduction, consumer savings, cost-effective energy-conservation policy, and greenhouse gas emissions abatement.
The effect of well-designed energy efficiency standards and labels is to reduce unnecessary energy consumption by appliances, equipment, and lighting. Reducing electricity use lessens fuel combustion in electric power plants. This cost-effective reduction in overall fuel combustion has many beneficial consequences—the primary benefits are detailed below.
Benefits of Mandatory Standards Mandatory standards – when designed well – can be very effective at producing very large, cost-effective energy savings without limiting economic growth. Implementation of mandatory standards requires change in the behavior of a manageable number of manufacturers rather than the entire consuming public. Additionally, mandatory standards – when implemented fairly – treat all manufacturers, distributors and retailers equally.
Benefits of Labels
Mandatory and voluntary energy labels help consumers understand which products are most efficient and what affect that efficiency will have on their energy bills. In addition to influencing consumers to choose more efficient products, energy efficiency labels create competition among manufacturers to innovate, produce and market energy efficient models which in turn leads retailers to promote efficient products. Visit What We Do: Label Design & Implementation to learn more about different types of energy efficiency labels.
Benefits of S&L for Governments, Regulatory Bodies and Policy Makers Improving the energy performance of appliances, equipment and lighting is an essential element in the policy portfolio of any government aiming to improve energy efficiency and mitigate climate change. Energy efficiency standards and labels provide tools that help governments, regulatory bodies and policy makers develop balanced voluntary and regulatory programs that remove cost-ineffective, energy-wasting products from the marketplace and stimulate the development of cost-effective, energy efficient technology.
Benefits of S&L Harmonization As individual nations around the world increasingly adopt and expand energy efficient standards and labeling, the harmonization of policy options with those of other countries often brings additional benefits. Program costs potentially decrease when a country or region adopts S&L elements – such as performance standards, test procedures, or S&L revision schedules – from trade partners. Additionally, implementing S&L from international regulatory bodies or neighboring countries can remove trade barriers among partners as well as help avoid the dumping of inefficient products on unregulated or under-regulated markets.