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A randomized trial of energy cost information provision alongside energy-efficiency classes for refrigerator purchases

Author

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  • Giovanna d’Adda

    (University of Milan
    Centro Euromediterraneo sui Cambiamenti Climatici)

  • Yu Gao

    (Peking University)

  • Massimo Tavoni

    (Centro Euromediterraneo sui Cambiamenti Climatici
    Politecnico di Milano)

Abstract

Energy-efficiency classes provide coarse but easy-to-process information designed to help complex decisions. However, they are multi-attribute indices, imprecisely related to the running costs of graded products. Here we evaluate the impact of adding simple but accurate yearly or lifetime energy cost information to the European Union energy label. We conduct a field experiment with an online retailer of energy-using durables, measuring customers’ (n = 126,614) search and purchases of refrigerators. Providing precise energy costs leads to purchasing products with lower prices and in lower energy-efficiency classes, but with similar overall energy and total costs. Furthermore, information provision lengthens product search among buyers, with more attention paid to low energy class products. These results highlight that the use of energy classes involves a trade-off between short-term economic savings and higher search cost. By drawing attention away from energy costs, energy-efficiency classes might not be adequate in the context of a fair and transparent climate transition.

Suggested Citation

  • Giovanna d’Adda & Yu Gao & Massimo Tavoni, 2022. "A randomized trial of energy cost information provision alongside energy-efficiency classes for refrigerator purchases," Nature Energy, Nature, vol. 7(4), pages 360-368, April.
    • Handle: RePEc:nat:natene:v:7:y:2022:i:4:d:10.1038_s41560-022-01002-z
    DOI: 10.1038/s41560-022-01002-z
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    Cited by:

    1. Bonan, Jacopo & Cattaneo, Cristina & D'Adda, Giovanna & Tavoni, Massimo, 2023. "Daily Temperature and Sales of Energy-using Durables," RFF Working Paper Series 23-43, Resources for the Future.
    2. He, Shutong & Blasch, Julia & van Beukering, Pieter & Wang, Junfeng, 2022. "Energy labels and heuristic decision-making: The role of cognition and energy literacy," Energy Economics, Elsevier, vol. 114(C).
    3. Olsthoorn, Mark & Schleich, Joachim & Guetlein, Marie-Charlotte & Durand, Antoine & Faure, Corinne, 2023. "Beyond energy efficiency: Do consumers care about life-cycle properties of household appliances?," Energy Policy, Elsevier, vol. 174(C).

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