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What's driving energy efficient appliance label awareness and purchase propensity?

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  • Mills, Bradford
  • Schleich, Joachim

Abstract

The EU appliance energy consumption labeling scheme is a key component of efforts to increase the diffusion of energy-efficient household appliances. In this paper, the determinants of consumer knowledge of the energy label for household appliances and the choice of class-A energy-efficient appliances are jointly estimated using data from a large survey of more than 20,000 German households. The results for five major appliances suggest that lack of knowledge of the energy label can generate considerable bias in both estimates of rates of uptake of class-A appliances and in estimates of the underlying determinants of choice of class-A appliance. Simulations of the choice to purchase a class-A appliance, given knowledge of the labeling framework, reveal that residence characteristics and, in several cases, regional electricity prices strongly increase the propensity to purchase a class-A appliance, but socio-economic characteristics have surprisingly little impact on appliance energy-class choice.

Suggested Citation

  • Mills, Bradford & Schleich, Joachim, 2010. "What's driving energy efficient appliance label awareness and purchase propensity?," Energy Policy, Elsevier, vol. 38(2), pages 814-825, February.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:814-825
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    4. Ibon Galarraga & David Heres Del Valle & Mikel González-Eguino, 2011. "Price Premium for High-Efficiency Refrigerators and Calculation of Price-Elasticities for Close-Substitutes: Combining Hedonic Pricing and Demand Systems," Working Papers 2011-07, BC3.
    5. Mathioulakis, Emmanouil & Babalis, Stamatis & Kalogirou, Soteris & Belessiotis, Vassilis, 2017. "Energy Labelling and Ecodesign of solar thermal products: Opportunities, challenges and problematic implementation aspects," Renewable Energy, Elsevier, vol. 101(C), pages 728-736.
    6. Carsten Lynge Jensen & Lars Gårn Hansen & Troels Fjordbak & Erik Gudbjerg, 2011. "The effect of providing free autopoweroff plugs to households on electricity consumption - A field experiment," IFRO Working Paper 2011/10, University of Copenhagen, Department of Food and Resource Economics.
    7. Zeng, Lei & Yu, Yang & Li, Jiayang, 2014. "China’s Promoting Energy-Efficient Products for the Benefit of the People Program in 2012: Results and analysis of the consumer impact study," Applied Energy, Elsevier, pages 22-32.
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    9. Zhou, Hui & Bukenya, James O., 2016. "Information inefficiency and willingness-to-pay for energy-efficient technology: A stated preference approach for China Energy Label," Energy Policy, Elsevier, vol. 91(C), pages 12-21.
    10. Bekaroo, Girish & Bokhoree, Chandradeo & Pattinson, Colin, 2016. "Impacts of ICT on the natural ecosystem: A grassroot analysis for promoting socio-environmental sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1580-1595.
    11. Kusaka, Wakana & Kojima, Michikazu & Watanabe, Mariko, 2012. "Environmental consciousness, economic gain and consumer choice of energy efficient appliances in Thailand, China and India," IDE Discussion Papers 345, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Wijaya, Muhammad Ery & Tezuka, Tetsuo, 2013. "Measures for improving the adoption of higher efficiency appliances in Indonesian households: An analysis of lifetime use and decision-making in the purchase of electrical appliances," Applied Energy, Elsevier, pages 981-987.
    13. Aydin, Erdal, 2016. "Energy conservation in the residential sector : The role of policy and market forces," Other publications TiSEM b9cedba8-1310-4097-90fb-b, Tilburg University, School of Economics and Management.
    14. Julia Blasch & Nilkanth Kumar & Massimo Filippini, 2016. "Boundedly rational consumers, energy and investment literacy, and the display of information on household appliances," CER-ETH Economics working paper series 16/249, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    15. Yue, Ting & Long, Ruyin & Chen, Hong, 2013. "Factors influencing energy-saving behavior of urban households in Jiangsu Province," Energy Policy, Elsevier, vol. 62(C), pages 665-675.
    16. Mills, Bradford & Schleich, Joachim, 2012. "Residential energy-efficient technology adoption, energy conservation, knowledge, and attitudes: An analysis of European countries," Energy Policy, Elsevier, vol. 49(C), pages 616-628.
    17. Ibon Galarraga & Josu Lucas, 2013. "Economic Evaluation of Energy Efficiency Labelling in Domestic Appliances: the Spanish Market," Working Papers 2013-08, BC3.
    18. Murray, Anthony G. & Mills, Bradford F., 2011. "Read the label! Energy Star appliance label awareness and uptake among U.S. consumers," Energy Economics, Elsevier, vol. 33(6), pages 1103-1110.
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    20. repec:eee:eneeco:v:66:y:2017:i:c:p:85-98 is not listed on IDEAS
    21. Panzone, Luca A., 2013. "Saving money vs investing money: Do energy ratings influence consumer demand for energy efficient goods?," Energy Economics, Elsevier, vol. 38(C), pages 51-63.
    22. Galarraga, Ibon & González-Eguino, Mikel & Markandya, Anil, 2011. "Willingness to pay and price elasticities of demand for energy-efficient appliances: Combining the hedonic approach and demand systems," Energy Economics, Elsevier, vol. 33(S1), pages 66-74.
    23. repec:eee:jfpoli:v:71:y:2017:i:c:p:62-73 is not listed on IDEAS
    24. Jacobsen, Grant D., 2015. "Do energy prices influence investment in energy efficiency? Evidence from energy star appliances," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 94-106.

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