When do energy-efficient appliances generate energy savings? Some evidence from Canada

Improvements in the energy efficiency of household appliances have the potential to decrease residential energy use, but these reductions accrue gradually over time as newer appliances replace older models. SHEU-2003 data are used to examine appliance replacement patterns in Canada for refrigerators, freezers, dishwashers, clothes washers and clothes dryers. The data indicate that the ages at which appliances are replaced tend to be lowest for dishwashers and highest for freezers, with over 40% of freezers in use for more than 20 years before being retired. The life spans of Canadian appliances are compared to the underlying assumptions regarding appliance lifetimes used in models of residential energy demand. We find that Canadian appliance retirement patterns differ from those assumed in the previous literature. Socioeconomic factors related to appliance replacement are also examined. We find that replacement patterns can be sensitive to household characteristics such as income, providing evidence that there may be scope for targeted policies aimed at inducing earlier replacements of older household appliances with new energy-efficient models. (c) 2007 Elsevier Ltd. All rights reserved.