Abstract
This study analyzes and comprehends the energy efficiency gap, which negatively influences the energy saving policy, captureing the impact of a replacement into the new refrigerator on its electricity consumption in a household. Although the previous literature well explained its mechanism, opinions are divergent on its magnitude. Therefore, I analyze the impact of the replacement using household-level data and consider the magnitude from the results. The results show that the replacement's effect is the approxi-mately 60% saving on refrigerator's electricity consumption. We can regard the saving as the average value of the electricity saving to replace about 14-year-old energy-saving technology from 2014 into the available technology in 2014. Moreover, the implicit discount rate from the analysis is larger than an interest rate in the market but smaller than the rates which were showed by the previous literature. The magnitude from the replacement should not be ignored when the energy effi-ciency technology in refrigerators becomes improved.
