Why I am not replacing my energy guzzling freezer with an energy efficient one

I’ve had a 200 litre upright freezer for 12 years that consumes (at current costs) around $173  of electricity per year.

Question: should I upgrade to a more energy efficient one?

The answer is no. The attached spreadsheet (click here) explains why. 

The sunk cost concept is crucial to such a calculation.

I have calculated that (at current price) the freezer has cost me around $2800 to date. However, that is totally immaterial to a decision to continue with it or replace it.

The real problem is that energy efficient feezers are still around 2-3 times costlier than less energy efficient ones. 

Replacing my freezer only becomes viable if I believe it will last more than 22 more years.

It has already worked for 12 years. I expect it will die sometime in the next 22 years, when I should buy a more efficient one. 

Over the years, I expect t be able to generate energy at home, thereby lowering my energy costs significantly.

DECISION: DO NOT CHANGE. 

Of course, if I want to increase freezer capacity from 200 to 300 litres or more, I should consider a new freezer. But so long as the job is being done adequately by a 200 litre freezer (in addition to the fridge – which I do intend replacing soon) I should not be attracted by the promise of greater energy efficiency.

EXTERNALITIES

Some externalities may arise from this decision, that I do not factor into my private calculation. But that’s not my business to consider. Should someone subsidise me by around $1000, I MAY consider replacing my freezer. But then the society MUST gain at least $1000 (plus administrative costs) in real benefits for that subsidy to be even remotely a viable policy.