Estimating an economic-efficient frontier for dishwasher consumer choice
- 111 Downloads
Dishwashers are a ubiquitous appliance in households in the USA. They combine capital, energy, and water to provide a relevant household service, namely dishwashing. The economic efficiency of dishwashers has been previously assessed using data envelopment analysis (DEA). The approach addresses the technical efficiency of dishwashers based on possible trade-offs between capital and energy. It further draws from the technical efficiency scores an efficient frontier for dishwashing based on these two input factors. We argue that water could also be a relevant input factor to that frontier, especially from the perspective of consumer choice. We develop a DEA model that includes water as an additional input and test if adding water to the analysis contributes to the efficiency frontier. We find that water does have some effect on the frontier, as the DEA model that includes water as an input factor leads to a richer set of efficient possibilities for dishwashing, where energy and water are traded off. We rely on our method and findings to propose two approaches to inform dishwasher consumer choice. One is extending an energy label to include dishwasher water consumption, as a means to inform consumers on their possible trade-offs between energy and water consumption at different levels of appliance price and quality. The other one is disclosing the DEA efficiency scores we estimate as an indicator of the overall economic efficiency of each dishwasher model.
KeywordsData envelopment analysis Efficiency frontier Consumer-choice Energy durables Dishwashers
This work was supported by the Office of Energy Efficiency and Renewable Energy (Solar Technologies Office) of the US Department of Energy under Lawrence Berkeley National Laboratory Contract No. DE-AC02-05CH1131. We acknowledge Prof. Luiz F. L. Legey, COPPE/PPE, Universidade Federal do Rio de Janeiro, Brazil, and six anonymous reviewers for their valuable comments on a draft version of this paper.
Compliance with ethical standards
Conflict of interest
The authors declare that they have no competing interests.
- AHAM. (2014). Energy Efficiency and Consumption Trends 1990–2014. Washington, DC: Association of Home Appliance Manufacturers.Google Scholar
- AHAM. (2015). Total unit shipments of dishwashers in the U.S. from 2005 to 2016. In Statista.com. [http://www.statista.com/statistics/220166/unit-shipments-of-dishwashers/].
- Banker, R. D., & Natarajan, R. (2011). Chapter 11: Statistical tests based on DEA efficiency scores. In W. W. Cooper et al. (Eds.), Handbook on data envelopment analysis, International Series in Operations Research & Management Science 164. New York: Springer.Google Scholar
- Blum, H., & Okwelum, E. (2016). Estimating returns to scale and scale efficiency for energy consuming appliances. Berkeley: Lawrence Berkeley National Laboratory.Google Scholar
- Dubin, J. A. (1985). Consumer durable choice and the demand for electricity, Contributions to Economic Analysis 155. Amsterdam: North-Holland Publishing Company.Google Scholar
- Emrouznejad, A., & Yang, G. (2017). A survey and analysis of the first 40 years of scholarly literature in DEA: 1978-2016. Socio-Economic Planning Sciences. https://doi.org/10.1016/j.seps.2017.01.008.
- Gattoufi, S., Oral, M., & Reisman, A. (2004). Data envelopment analysis literature: a bibliography update (1951–2001). Journal of Socio-Economic Planning Sciences, 38(2–3), 159–229.Google Scholar
- Kumar, S., & Gulati, R. (2008). An examination of technical, pure technical, and scale efficiencies in Indian public sector banks using data envelopment analysis. Eurasian Journal of Business and Economics, 1(2), 33–69.Google Scholar
- Qin, Z., & Song, I. (2014). Joint variable selection for data envelopment analysis via group sparsity. Social Science Research Network (SSRN). https://doi.org/10.2139/ssrn.2406690.
- Sexton, T. R., Silkman, R. H., & Hogan, A. J. (1986). Data envelopment analysis: critique and extensions. In R. H. Silkman (Ed.), Measuring efficiency: an assessment of data envelopment analysis, New Directions for Program Evaluation 32. San Francisco: Jossey-Bass.Google Scholar
- Siebens, J. (2013). Extended measures of well-being: living conditions in the United States: 2011, Household Economic Studies (pp. 70–136). Washington, DC: United States Census Bureau.Google Scholar
- Simar, L., & Wilson, P. W. (2008). Statistical inference in nonparametric frontier models: recent developments and perspectives. In H. O. Fried et al. (Eds.), The measurement of productive efficiency and productivity growth. New York: Oxford University Press.Google Scholar
- Staat, M. R., Bauer, H. H., & Hammerschmidt, M. (2002). Structuring product markets: an approach based on customer value. Marketing Educators’ Conference Proceedings, 13(1), 205–212.Google Scholar
- US Census Bureau. (2010a). Manufacturers’ shipments, inventories & orders [historical data]. Washington, DC, USA: United States Census Bureau http://www.census.gov/manufacturing/m3/historical_data/index.html.Google Scholar
- US Census Bureau. (2010b). Shipment value of household dishwashing machines in the U.S. from 2008 to 2010. In Statista.com. http://www.statista.com/statistics/221241/shipment-value-of-dishwashers-since-2008/.
- US DOE. (2012). Energy conservation program: test procedures for residential dishwashers, dehumidifiers, and conventional cooking products. 10 CFR Parts 429 and 430 [Docket No. EERE–2010–BT–TP–0039], RIN 1904–AC01. Federal Register 77 (211): 65,942–65,997. http://www.regulations.gov/#!documentDetail;D=EERE-2010-BT-TP-0039-0040.
- US DOE. (2015). U. S. Department of Energy’s compliance certification database. Washington, DC: U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy http://www.regulations.doe.gov/certification-data/.Google Scholar
- US DOE. (2016a). Technical support document: energy efficiency program for consumer products and commercial and industrial equipment—residential dishwashers. Washington, DC: U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy https://www.regulations.gov/document?D=EERE-2014-BT-STD-0021-0029.Google Scholar