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Is There an Energy Efficiency Gap in China? Evidence from an Information Experiment

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  • Graham Beattie
  • Iza Ding
  • Andrea La Nauze

Abstract

We provide evidence of an energy efficiency gap in China. Using an incentivized field experiment, we document that providing information to consumers on the energy costs of lightbulbs significantly affects their willingness to pay for energy efficient bulbs. Unlike previous literature, we do not find evidence that this gap is driven by biased beliefs. Further our experimental design allows us to rule out that changes in willingness to pay are driven purely by the salience of the monetary or environmental costs of lightbulbs. We argue that the results are consistent with consumers being risk averse and uncertain about the benefits of more energy efficient appliances.

Suggested Citation

  • Graham Beattie & Iza Ding & Andrea La Nauze, 2021. "Is There an Energy Efficiency Gap in China? Evidence from an Information Experiment," CESifo Working Paper Series 9435, CESifo.
    • Handle: RePEc:ces:ceswps:_9435
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    References listed on IDEAS

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    Cited by:

    1. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    2. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).

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    More about this item

    Keywords

    energy-efficiency; lightbulbs; information experiment;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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