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Putting a New ‘Spin’ on Energy Information: Measuring the Impact of Reframing Energy Efficiency Information on Tumble Dryer Choices in a Multi-country Experiment

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  • S. Ceolotto

    (Euro-Mediterranean Center on Climate Change and Ca’ Foscari University of Venice)

  • E. Denny

    (Trinity College Dublin, Trinity College)

Abstract

It has been shown that consumers often underinvest in energy efficiency despite net benefits over the longer term. One possible explanation is that they do not properly understand energy information when provided in physical units, as in most energy labels. Prior studies have investigated the effect of reframing energy information into monetary units. Outcomes are mixed, and it is unclear whether this is due to the use of different products, methodologies or to studies being conducted in countries with different energy prices and labelling standards. This paper overcomes this ambiguity by testing the effect of providing monetary energy information using the same experiment in a multi-country setting. Results show that the intervention’s effectiveness varies considerably across countries. Moreover, they highlight the presence of within-country heterogeneities based on demographic characteristics, with monetary information being more effective for high-usage households but seemingly crowding out the motivation of those whose purchasing decisions depend on environmental considerations.

Suggested Citation

  • S. Ceolotto & E. Denny, 2024. "Putting a New ‘Spin’ on Energy Information: Measuring the Impact of Reframing Energy Efficiency Information on Tumble Dryer Choices in a Multi-country Experiment," Journal of Consumer Policy, Springer, vol. 47(1), pages 51-108, March.
    • Handle: RePEc:kap:jcopol:v:47:y:2024:i:1:d:10.1007_s10603-023-09556-5
    DOI: 10.1007/s10603-023-09556-5
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    More about this item

    Keywords

    Energy efficiency information; Energy efficiency labels; Discrete choice experiment; Tumble dryers; Framing effect;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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