Multiobjective analysis of market transformation strategies

The objective of the U.S. Department of Energy's Volume Purchase Program is to work with utilities to marker emerging energy and water efficient techn ologies. Using a volume purchase strategy, the Department of Energy wants t o transform the U.S. market for new, energy and water efficient clothes was hers to increase and hasten market acceptance of these appliances. This pap er describes how multiobjective decision analysis is used to evaluate marke t transformation strategies for high-efficiency clothes washers. The three alternatives being considered are (1) volume purchases: (2) utility rebates ; and (3) no incentives. A Hill's goals-achievement matrix methodology is u sed to analyze the ability of each alternative to meet the goals of environ mental and energy conservation and economic improvement. The differing view points of the consumer, utility, appliance manufacturer, and U.S. governmen t are considered in the evaluation. The results of the analysis show that t he volume purchase option is marginally superior to the utility rebate opti on. The option to offer no incentives is a significantly inferior alternati ve to the other proposed alternatives.