How Volume Equipment Purchases Can Build Markets For Energy-Efficient Technologies
Abstract
Ever since the Energy Crisis of 1973-1974, the United States and
other countries have tried to bring more energy-efficient appliances,
equipment, and practices into the market place at a more rapid pace
than unmodified market forces would permit. The process of over-
coming market barriers, also known as market transformation, re-
quires: 1) the potential for manufacturing better equipment at accept-
able costs; 2) informed buyers and sellers; 3) appropriate catalystts) to
spur market forces; and 4) financing. Governments can provide sev-
eral of these preconditions by organizing early volume purchases of
new technology. Two recent examples of volume purchase programs
organized by Pacific Northwest National Laboratory illustrate both
the potential of such programs to transform markets and the types of
issues that must be addressed in developing a successful program.
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