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The Effect of Mail-in Utility Rebates on Willingness-to-Pay for ENERGY STAR $$^{\textregistered }$$ ® Certified Refrigerators

Author

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  • Xiaogu Li
  • Christopher Clark
  • Kimberly Jensen
  • Steven Yen

Abstract

The number and variety of governmental programs designed to promote energy efficiency have increased over time. Examples include mandatory minimum efficiency standards, subsidies for more energy efficient goods and services, and consumer labels, such as the United States Environmental Protection Agency’s ENERGY STAR $$^{\textregistered }$$ ® . While there has been considerable research on the effects of these programs in isolation, there has been less of a focus on joint effects or interactions between programs. This study examines how the offer of a mail-in rebate influences consumer willingness-to-pay for an ENERGY STAR-certified refrigerator. Data used for this study were collected from an online survey containing a hypothetical choice experiment conducted in the United States in 2009. Results suggest that the offer of a rebate induces uncertainty about the quality of ENERGY STAR-certified refrigerators and, thus, could actually reduce willingness-to-pay for such refrigerators. Copyright Springer Science+Business Media Dordrecht 2016

Suggested Citation

  • Xiaogu Li & Christopher Clark & Kimberly Jensen & Steven Yen, 2016. "The Effect of Mail-in Utility Rebates on Willingness-to-Pay for ENERGY STAR $$^{\textregistered }$$ ® Certified Refrigerators," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 1-23, January.
    • Handle: RePEc:kap:enreec:v:63:y:2016:i:1:p:1-23
    DOI: 10.1007/s10640-014-9833-5
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    Cited by:

    1. Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2020. "Conveyance, envy, and homeowner choice of appliances," Energy Economics, Elsevier, vol. 89(C).
    2. Tu, Gengyang & Faure, Corinne & Schleich, Joachim & Guetlein, Marie-Charlotte, 2021. "The heat is off! The role of technology attributes and individual attitudes in the diffusion of Smart thermostats – findings from a multi-country survey," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    3. Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2020. "Household preferences for new heating systems: Insights from a multi-country discrete choice experiment," Working Papers "Sustainability and Innovation" S05/2020, Fraunhofer Institute for Systems and Innovation Research (ISI).
    4. Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2019. "Conveyance and the moderating effect of envy on homeowners' choice of appliances," Working Papers "Sustainability and Innovation" S06/2019, Fraunhofer Institute for Systems and Innovation Research (ISI).

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