Low Energy Light Bulbs

The Market Introduction of

EU Ban of Light Bulbs

History

How it works

Differences

Normal Light Bulb

CompactFluorecentLamp

Energy Consumption

100 W 20 W

Durability 1,000 hours 10,000 hours

Pricing $5 $15

Slow Start

Existing conceptions of light bulbs

Other products not adapted

The Tide Turns

Environmental concerns among consumers

Improved technology

Power strategies from legislators

Switch to a New Technology

Cowan and Hultén (1996) identify six mainfactors that could possibly evoke an escape from an existent lock-in or completely unlock a market.

1. Crisis in the existing technology

Conventional bulbs still serving their initial purpose

But relative/perceived efficiency decreased

2. Regulation

Very critical factor for the future of the light bulb market

Governments to promote the use of CFL or even ban incandescent bulbs

3. Technological breakthrough producing a cost breakthrough

Higher retail price

But a cost advantage in the long run (life duration and low energy consumption)

4. Change in taste

Crucial factor

Consumers increasingly concerned about environmental issues

More and more prefer environmentally friendly products

5. Niche markets

Of minimal importance

No big niche for the CFL bulbs

Few early adopters

6. Scientific results

Innovative technology enabled the invention and production of CFL bulbs

This knowledge put “pressure on the old technology” and questioned its efficiency. 

Pricing

Gregson et al. 2005

Future Outlook

Two paths have been taken that may create a future CFL lock-in:

Adapation by retail Laws