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With the development of economy, energy is more and more important around the world, especially in developing countries such as China. How to use limited energy effectively is an important issue not only for consumer and enterprise, but also for government. In academic and practice field, making use of energy saving product is an interesting topic. This paper studies the consuming decision of customers for energy saving product and the impacts of tax and subsidy policy on it. By setting up a series models, the results show that the consuming decision of energy saving product is not only related with its using period of time, consuming cost, but also related with tax and subsidy on it. Moreover, for rational customers, we put forth the conditions that they have the incentive to buy and use energy saving product. Therefore, in order to make use of limited energy and improve its using efficiency, it is necessary for the government to lower the price of energy saving product through policy such as tax and subsidy.

A Study on the Consuming Decision of Energy Saving Product in the Cost Perspective