Multiobjective Analysis of Market Transformation Strategies

Abstract

The objective of the U.S. Department of Energy's Volume Purchase Program is to work with utilities to market emerging energy and water efficient technologies. Using a volume purchase strategy, the Department of Energy wants to transform the U.S. market for new, energy and water efficient clothes washers to increase and hasten market acceptance of these appliances. This paper describes how multiobjective decision analysis is used to evaluate market 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 used to analyze the ability of each alternative to meet the goals of environmental and energy conservation and economic improvement. The differing viewpoints of the consumer, utility, appliance manufacturer, and U.S. government are considered in the evaluation. The results of the analysis show that the volume purchase option is marginally superior to the utility rebate option. The option to offer no incentives is a significantly inferior alternative to the other proposed alternatives.