EFFECTS OF APPLIANCE STANDARDS ON PRODUCT PRICE AND ATTRIBUTES - AN HEDONIC PRICING MODEL

The tradeoffs between energy efficiency gains and product attributes a s a result of the implementation of federal energy performance standar ds are examined. Hedonic pricing relationships are used to estimate ch anges in standardized marginal attribute prices for freezer volumes, f ood volumes, and annual energy consumption for refrigerators and ref r efrigerator/freezers. From 1987/88 to 1993, energy performance standar ds significantly reduced energy consumption and at the same time, a hi storical decline in ''quality-adjusted'' real prices continued without disruption and consumers appeared to experience a welfare gain as a r esult of improving revels of energy efficiency.