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Consumer response to energy label policies: Evidence from the Brazilian energy label program

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  • Huse, Cristian
  • Lucinda, Claudio
  • Cardoso, Andre Ribeiro

Abstract

The PBE program made the adoption of energy labels mandatory in the Brazilian refrigerator market. In this paper, we examine the effects of PBE using data from a nationally representative sample of households and a structural model of appliance choice. We document a modest increase in the valuation of energy costs by Brazilian consumers. However, the program is unable to eliminate the energy efficiency gap, in that consumers undervalue energy costs both pre-and post-PBE. Moreover, our policy simulation documents little product switching and heterogeneity in responses. All in all, while the PBE program aimed to both reduce energy consumption and increase energy efficiency, we can only claim robust evidence of the latter.

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  • Huse, Cristian & Lucinda, Claudio & Cardoso, Andre Ribeiro, 2020. "Consumer response to energy label policies: Evidence from the Brazilian energy label program," Energy Policy, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:enepol:v:138:y:2020:i:c:s030142151930789x
    DOI: 10.1016/j.enpol.2019.111207
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    More about this item

    Keywords

    Energy demand; Energy efficiency; Energy efficiency gap; Energy label; Information programs; Refrigerators;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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