This chapter evaluates whether standards and labeling programs aimed at improving the energy efficiency of
electrical appliances have been successful at achieving their goals. Standards and labeling programs work to
reduce energy consumption by (a) influencing consumers’ choice of appliance and (b) inducing manufacturers
to improve the energy efficiency of their products. In Most middle- and high-income countries first introduced
mandatory minimum energy performance standards (MEPS) and/or multi-grade labeling and then added high
energy performance standards (HEPS) that upgraded those standards. Analysis of product-level data for the air
conditioner markets in Japan, Thailand, India and China yielded the following findings: (1) Standards and
labeling programs appear to be effective at changing energy efficiency levels in the marketplace. There has
been a clear improvement in the energy efficiency of air conditioners, measured by such indexes as coefficient
of performance (COP), energy efficiency ratio (EER) and annual performance factor (APF) in Japan. (2) More
energy-efficient products are priced higher in Japan and India. (3) Japan succeeded in reducing electricity
consumption from air conditioners by one-half, but neither Thailand nor China succeeded in curbing electricity
consumption. Appropriate fine-tuning of policy instruments is necessary to effectively reduce electricity use by
air conditioners. An example is the introduction of a rule-based mechanism to revise minimum efficiency
standards regularly. Cross-country harmonization of regulatory methods, such as methods to measure energy
efficiency and revise efficiency standards, may also be beneficial.