IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v269y2023ics0360544223002414.html
   My bibliography  Save this article

Does energy-efficiency label affect appliance price? Empirical analysis of the new national standard air conditioners in China

Author

Listed:
  • Zhang, Yixiang
  • Song, Bowei

Abstract

A new national standard (NS) for energy-efficiency labels has been released in China to improve the energy-efficiency requirements of household appliances. However, the impacts of the newly revised NS for air conditioners (ACs) on consumer preference and willingness to pay (WTP) remain unclear. Using data from a large e-commerce website in China, this study explores users’ preferences and WTP for the attributes of online stores, comments, and products pertaining to new NS ACs based on the hedonic price model (HPM), and uses the Heckman two-step estimation to correct for selection bias. The results show that the premium of the new NS energy-efficiency label estimated by the Heckman model is 6.24%, which is 23.71% lower than that estimated directly by the HPM. Online store attributes and comment attributes also affect the prices of new NS ACs. Furthermore, product attributes have effects on the prices of both new and old NS ACs, while online store attributes and comment attributes have greater effects on the old NS ACs. Finally, after the implementation of the new NS, the premium for the new NS energy-efficiency label is lower than that of the old one.

Suggested Citation

  • Zhang, Yixiang & Song, Bowei, 2023. "Does energy-efficiency label affect appliance price? Empirical analysis of the new national standard air conditioners in China," Energy, Elsevier, vol. 269(C).
    • Handle: RePEc:eee:energy:v:269:y:2023:i:c:s0360544223002414
    DOI: 10.1016/j.energy.2023.126847
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223002414
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.126847?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zha, Donglan & Yang, Guanglei & Wang, Wenzhong & Wang, Qunwei & Zhou, Dequn, 2020. "Appliance energy labels and consumer heterogeneity: A latent class approach based on a discrete choice experiment in China," Energy Economics, Elsevier, vol. 90(C).
    2. Alberto Abadie & Guido W. Imbens, 2016. "Matching on the Estimated Propensity Score," Econometrica, Econometric Society, vol. 84, pages 781-807, March.
    3. Zhang, Yixiang & Li, Juan & Tao, Wenwen, 2021. "Does energy efficiency affect appliance prices? Empirical analysis of air conditioners in China based on propensity score matching," Energy Economics, Elsevier, vol. 101(C).
    4. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    5. Mahlia, T.M.I. & Saidur, R., 2010. "A review on test procedure, energy efficiency standards and energy labels for room air conditioners and refrigerator-freezers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1888-1900, September.
    6. Hancevic, Pedro I. & Sandoval, Hector H., 2022. "Low-income energy efficiency programs and energy consumption," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    7. Mark DeFond & David H. Erkens & Jieying Zhang, 2017. "Do Client Characteristics Really Drive the Big N Audit Quality Effect? New Evidence from Propensity Score Matching," Management Science, INFORMS, vol. 63(11), pages 3628-3649, November.
    8. Tadesse, Tewodros, 2009. "Environmental concern and its implication to household waste separation and disposal: Evidence from Mekelle, Ethiopia," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 183-191.
    9. Huh, Sung-Yoon & Jo, Manseok & Shin, Jungwoo & Yoo, Seung-Hoon, 2019. "Impact of rebate program for energy-efficient household appliances on consumer purchasing decisions: The case of electric rice cookers in South Korea," Energy Policy, Elsevier, vol. 129(C), pages 1394-1403.
    10. Roy Brouwer, 2011. "A mixed approach to payment certainty calibration in discrete choice welfare estimation," Applied Economics, Taylor & Francis Journals, vol. 43(17), pages 2129-2142.
    11. Hongyu Wang & Xiaolei Wang & Apurbo Sarkar & Fuhong Zhang, 2021. "How Capital Endowment and Ecological Cognition Affect Environment-Friendly Technology Adoption: A Case of Apple Farmers of Shandong Province, China," IJERPH, MDPI, vol. 18(14), pages 1-16, July.
    12. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    13. Kim, Changhee & Chung, Chanjin, 2011. "Hedonic Analysis of Retail Egg Prices Using Store Scanner Data: An Application to the Korean Egg Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(3), pages 1-14, November.
    14. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 941-975.
    15. Mi, Lingyun & Zhu, Hanlin & Yang, Jie & Gan, Xiaoli & Xu, Ting & Qiao, Lijie & Liu, Qingyan, 2019. "A new perspective to promote low-carbon consumption: The influence of reference groups," Ecological Economics, Elsevier, vol. 161(C), pages 100-108.
    16. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    17. Benoit Faye, 2021. "Methodological discussion of Airbnb's hedonic study: A review of the problems and some proposals tested on Bordeaux City data," Post-Print hal-03407540, HAL.
    18. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    19. Ding, Qun & Cai, Wenjia & Wang, Can & Sanwal, Mukul, 2017. "The relationships between household consumption activities and energy consumption in china— An input-output analysis from the lifestyle perspective," Applied Energy, Elsevier, vol. 207(C), pages 520-532.
    20. Ali, Akhter & Bahadur Rahut, Dil & Behera, Bhagirath, 2016. "Factors influencing farmers׳ adoption of energy-based water pumps and impacts on crop productivity and household income in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 48-57.
    21. Zhang, Yixiang & Tao, Wenwen, 2020. "Will energy efficiency affect appliance price? An empirical analysis of refrigerators in China based on hedonic price model," Energy Policy, Elsevier, vol. 147(C).
    22. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    23. Zhang, Wei & Li, Guoxiang & Guo, Fanyong, 2022. "Does carbon emissions trading promote green technology innovation in China?," Applied Energy, Elsevier, vol. 315(C).
    24. 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.
    25. Xuemei Zhang & Haitao Yin & Rui Zhao, 2021. "Consumer willingness to pay for eco-labels in China: A choice experiment approach," Journal of Management Analytics, Taylor & Francis Journals, vol. 8(4), pages 673-692, October.
    26. Mi, Lingyun & Xu, Ting & Sun, Yuhuan & Yang, Hang & Wang, Bangjun & Gan, Xiaoli & Qiao, Lijie, 2021. "Promoting differentiated energy savings: Analysis of the psychological motivation of households with different energy consumption levels," Energy, Elsevier, vol. 218(C).
    27. Zha, Donglan & Chen, Qian & Wang, Lijun, 2022. "Exploring carbon rebound effects in Chinese households’ consumption: A simulation analysis based on a multi-regional input–output framework," Applied Energy, Elsevier, vol. 313(C).
    28. Shigeru Matsumoto, 2018. "Consumer valuation of energy-saving features of residential air conditioners with hedonic and choice models," Empirical Economics, Springer, vol. 55(4), pages 1779-1806, December.
    29. Katharina Sammer & Rolf Wüstenhagen, 2006. "The influence of eco‐labelling on consumer behaviour – results of a discrete choice analysis for washing machines," Business Strategy and the Environment, Wiley Blackwell, vol. 15(3), pages 185-199, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yixiang & Li, Juan & Tao, Wenwen, 2021. "Does energy efficiency affect appliance prices? Empirical analysis of air conditioners in China based on propensity score matching," Energy Economics, Elsevier, vol. 101(C).
    2. Amaia de Ayala & María del Mar Solà, 2022. "Assessing the EU Energy Efficiency Label for Appliances: Issues, Potential Improvements and Challenges," Energies, MDPI, vol. 15(12), pages 1-25, June.
    3. Mahirah Kamaludin & Muhd Azrin Shah Razali & Nazatul Faizah Haron & A. A. Azlina, 2021. "Energy Efficiency Labelling: Investigating Students Preferences and Awareness on the Energy-efficient Electrical Appliances in Hostel," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 300-308.
    4. Zhang, Yixiang & Tao, Wenwen, 2020. "Will energy efficiency affect appliance price? An empirical analysis of refrigerators in China based on hedonic price model," Energy Policy, Elsevier, vol. 147(C).
    5. Zha, Donglan & Yang, Guanglei & Wang, Wenzhong & Wang, Qunwei & Zhou, Dequn, 2020. "Appliance energy labels and consumer heterogeneity: A latent class approach based on a discrete choice experiment in China," Energy Economics, Elsevier, vol. 90(C).
    6. Zhiyu Lv & Xu Zhang, 2023. "Influencing Factor Analysis on Energy-Saving Refrigerator Purchases from the Supply and Demand Sides," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    7. Schleich, Joachim & Durand, Antoine & Brugger, Heike, 2021. "How effective are EU minimum energy performance standards and energy labels for cold appliances?," Energy Policy, Elsevier, vol. 149(C).
    8. Panos, Georgios & Theodossiou, Ioannis, 2009. "Union Mediation and Adaptation to Reciprocal Loyalty Arrangements," MPRA Paper 15471, University Library of Munich, Germany.
    9. Konstantinos Pouliakas & Ioannis Theodossiou, 2010. "Measuring the Utility Cost of Temporary Employment Contracts Before Adaptation: A Conjoint Analysis Approach," Economica, London School of Economics and Political Science, vol. 77(308), pages 688-709, October.
    10. Asche, Frank & Bronnmann, Julia & Cojocaru, Andreea L., 2021. "The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish," Ecological Economics, Elsevier, vol. 188(C).
    11. Georgios A. Panos & Ioannis Theodossiou, 2013. "Reciprocal Loyalty and Union Mediation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 645-676, July.
    12. Gongyi Zhang & Chang Zhang & Hongguang Nie, 2021. "An Overview of China’s Energy Labeling Policy Portfolio: China’s Contribution to Addressing the Global Goal of Sustainable Development," SAGE Open, , vol. 11(1), pages 21582440209, January.
    13. James J. Heckman, 2005. "Micro Data, Heterogeneity and the Evaluation of Public Policy Part 2," The American Economist, Sage Publications, vol. 49(1), pages 16-44, March.
    14. Miwa Nakai & Majah-Leah V. Ravago & Yoichi Miyaoka & Kiyoshi Saito & Toshi. H Arimura, 2022. "Consumers' Preferences for Energy-Efficient Air Conditioners in a Developing Country: A Discrete Choice Experiment Using Eco Labels," Working Papers e166, Tokyo Center for Economic Research.
    15. 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.
    16. McCausland, David & Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," MPRA Paper 14243, University Library of Munich, Germany.
    17. Tran, Minh Chau & Gan, Christopher & Hu, Baiding, 2014. "Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast region," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187495, New Zealand Agricultural and Resource Economics Society.
    18. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(04), pages 1-17, November.
    19. Wu, Fang & Cao, June & Zhang, Xiaosan, 2023. "Do non-executive employees matter in curbing corporate financial fraud?," Journal of Business Research, Elsevier, vol. 163(C).
    20. Yuen Leng Chow & Isa E. Hafalir & Abdullah Yavas, 2015. "Auction versus Negotiated Sale: Evidence from Real Estate Sales," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 432-470, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:269:y:2023:i:c:s0360544223002414. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.