Appliance energy efficiency policies and electricity consumption: Evidence from China

Appliances’ energy efficiency labels have been widely adopted globally to curb household electricity consumption, yet their effectiveness in developing countries remains understudied. Utilizing household data from the Chinese General Social Survey, this study examines the impact and mechanisms of appliance energy efficiency labels on household electricity consumption by employing multiple linear regression analysis. The findings reveal that the effectiveness of energy efficiency labels in China falls short of expectations. Notably, labeled Air Conditioners (AC), washing machines, and Televisions (TV) significantly increase household electricity consumption, whereas refrigerators reduce it. The reason primarily arises from behavioral changes induced by energy efficiency labels: households extend AC usage time for cooling, increase washing machine operation frequency, extend TV viewing hours, and modify TV standby settings. This study finds no evidence that labeled computers and water heaters increase household electricity consumption. These insights offer valuable guidance for policymakers, particularly in developing countries or regions, to establish complementing policies that synergize with energy efficiency labels to reduce household electricity consumption without jeopardizing resident welfare.