Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan
This study examines how consumers select ecologically efficient water heaters in Japan. Energy conservation in household water heating is increasingly important for reducing an amount of CO2 emission, because the share of water heating in household energy consumption is approximately 30%. Recently, Japanese households have widely used ecologically efficient electric heat pump water heaters (Eco Cute) or gas-fired water heaters (Eco Jozu). The total number of such efficient water heaters sold in Japan was more than 2.5 million at the end of 2008. This study investigates various factors and impacts of marketing strategy for promoting the appliances in Japan. We apply mixed and nested logit models to a disaggregated choice data on water heaters from 2004 to 2008. This study considers retail energy prices, a government financial support and marketing activities as important factors for appliance selection. In addition, we consider consumers' housing attributes such as floor space and age of building. This empirical study finds two business implications. One of the two implications is that an increase in an energy price may enhance a choice probability of Eco Cute and Eco Jozu because a price increase invites consumer's consciousness on energy conservation so that a cost reduction on energy consumption becomes essential in a use of the efficient appliances. The other implication is that marketing activities, especially by recommendations from sales representatives and/or housing suppliers, are important for consumer behaviors. The other important findings are discussed in this study. This business experience in Japan is useful to the other countries where ecologically efficient water heaters are not popular at the current moment.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008.
"Willingness to pay for energy-saving measures in residential buildings,"
Elsevier, vol. 30(2), pages 503-516, March.
- Silvia Banfi & Mehdi Farsi & Massimo Filippini & Martin Jakob, 2005. "Willingness to Pay for Energy-Saving Measures in Residential Buildings," CEPE Working paper series 05-41, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Narasimha Rao, M. & Reddy, B. Sudhakara, 2007. "Variations in energy use by Indian households: An analysis of micro level data," Energy, Elsevier, vol. 32(2), pages 143-153.
- Borchers, Allison M. & Duke, Joshua M. & Parsons, George R., 2007. "Does willingness to pay for green energy differ by source?," Energy Policy, Elsevier, vol. 35(6), pages 3327-3334, June.
- Yokoyama, Ryohei & Shimizu, Takeshi & Ito, Koichi & Takemura, Kazuhisa, 2007. "Influence of ambient temperatures on performance of a CO2 heat pump water heating system," Energy, Elsevier, vol. 32(4), pages 388-398.
- Sueyoshi, Toshiyuki, 2010. "An agent-based approach with collaboration among agents: Estimation of wholesale electricity price on PJM and artificial data generated by a mean reverting model," Energy Economics, Elsevier, vol. 32(5), pages 1025-1033, September.
- Chu, P. C. & Spires, Eric E. & Sueyoshi, Toshiyuki, 1999. "Cross-Cultural Differences in Choice Behavior and Use of Decision Aids: A Comparison of Japan and the United States," Organizational Behavior and Human Decision Processes, Elsevier, vol. 77(2), pages 147-170, February.
- Rousseau, P.G. & Greyvenstein, G.P., 2000. "Enhancing the impact of heat pump water heaters in the South African commercial sector," Energy, Elsevier, vol. 25(1), pages 51-70.
- Yokoyama, Ryohei & Wakui, Tetsuya & Kamakari, Junya & Takemura, Kazuhisa, 2010. "Performance analysis of a CO2 heat pump water heating system under a daily change in a standardized demand," Energy, Elsevier, vol. 35(2), pages 718-728.
- Liao, Huei-Chu & Chang, Tsai-Feng, 2002. "Space-heating and water-heating energy demands of the aged in the US," Energy Economics, Elsevier, vol. 24(3), pages 267-284, May.
- Vaage, Kjell, 2000.
"Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand,"
Elsevier, vol. 22(6), pages 649-666, December.
- Vaage, K., 2000. "heating Technology and Energy Use: a Discrete/Continuous Choice Approach to Norwegian Household Energy Demand," Norway; Department of Economics, University of Bergen 214, Department of Economics, University of Bergen.
- Rehdanz, Katrin, 2007.
"Determinants of residential space heating expenditures in Germany,"
Elsevier, vol. 29(2), pages 167-182, March.
- Katrin Rehdanz, 2005. "Determinants Of Residential Space Heating Expenditures In Germany," Working Papers FNU-66, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2005.
- Jeffrey A. Dubin, 1986. "A Nested Logit Model of Space and Water Heat System Choice," Marketing Science, INFORMS, vol. 5(2), pages 112-124.
- Hausman, Jerry & McFadden, Daniel, 1984.
"Specification Tests for the Multinomial Logit Model,"
Econometric Society, vol. 52(5), pages 1219-40, September.
- D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
- Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
- Takanori Ida & Toshifumi Kuroda, 2006. "Discrete Choice Analysis of Demand for Broadband in Japan," Journal of Regulatory Economics, Springer, vol. 29(1), pages 5-22, 01.
- Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Fuks, Mauricio & Salazar, Esther, 2008. "Applying models for ordinal logistic regression to the analysis of household electricity consumption classes in Rio de Janeiro, Brazil," Energy Economics, Elsevier, vol. 30(4), pages 1672-1692, July.
- Sueyoshi, Toshiyuki, 2010. "An agent-based approach equipped with game theory: Strategic collaboration among learning agents during a dynamic market change in the California electricity crisis," Energy Economics, Elsevier, vol. 32(5), pages 1009-1024, September.
- Fernandez, Viviana P., 2001. "Observable and unobservable determinants of replacement of home appliances," Energy Economics, Elsevier, vol. 23(3), pages 305-323, May.
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:33:y:2011:i:2:p:195-208. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.