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The Effect of Mail-in Utility Rebates on Willingness-to-Pay for ENERGY STAR® Certified Refrigerators

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  • Li, Xiaogu
  • Clark, Christopher D
  • Jensen, Kimberly L
  • Yen, Steven T

Abstract

This study examines how a $50 mail-in rebate influences consumer willingness-to-pay for an ENERGY STAR-certified refrigerator. Data collected from a 2009 U.S. online survey containing a hypothetical choice experiment. Results suggest that a rebate induces uncertainty about the quality of ENERGY STAR-certified refrigerators and, thus, could actually reduce willingness-to-pay.

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File URL: http://purl.umn.edu/159795
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas with number 159795.

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Date of creation: 2013
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Handle: RePEc:ags:saea14:159795

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Related research

Keywords: Choice Experiment; Eco-label; Energy Star; Generalized Multinomial Logit; Ordered Probit; Rebate; Refrigerator; Willingness-to-Pay; Environmental Economics and Policy; Q58; D12;

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  7. Lucas W. Davis, 2010. "Evaluating the Slow Adoption of Energy Efficient Investments: Are Renters Less Likely to Have Energy Efficient Appliances?," NBER Working Papers 16114, National Bureau of Economic Research, Inc.
  8. Souvik Datta & Sumeet Gulati, 2011. "Utility Rebates for ENERGY STAR Appliances: Are They Effective?," CEPE Working paper series 11-81, CEPE Center for Energy Policy and Economics, ETH Zurich.
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  11. Ward, David O. & Clark, Christopher D. & Jensen, Kimberly L. & Yen, Steven T. & Russell, Clifford S., 2011. "Factors influencing willingness-to-pay for the ENERGY STAR® label," Energy Policy, Elsevier, vol. 39(3), pages 1450-1458, March.
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