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Assessing the effect of energy technology labels on preferences

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  • Eleni Fimereli
  • Susana Mourato

Abstract

This paper investigates the effect of using labelled versus generic unlabelled alternatives in choice experiments (CEs) in the case of a multidimensional environmental good (power generation) that is often associated with strong prior beliefs and emotions. Specifically, it assesses the effect of naming selected low-carbon energy technologies on the underlying choices, the implicit prices for the technology attributes and the total economic values attached to their environmental benefits. Our findings are only mildly suggestive of a labelling effect where respondents employ different processing strategies when confronted with labels, focusing principally on the label and/or considering attributes differently. In the case of power generation, the use of labelled alternatives led to significantly different estimated attribute parameters; in contrast, most implicit prices remained undistinguishable and computed welfare measures were found to be statistically equivalent.

Suggested Citation

  • Eleni Fimereli & Susana Mourato, 2013. "Assessing the effect of energy technology labels on preferences," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 2(3), pages 245-265, November.
    • Handle: RePEc:taf:teepxx:v:2:y:2013:i:3:p:245-265
    DOI: 10.1080/21606544.2013.801183
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    References listed on IDEAS

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    1. Arne Risa Hole, 2007. "A comparison of approaches to estimating confidence intervals for willingness to pay measures," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 827-840, August.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    3. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
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    4. Canessa, Carolin & Venus, Terese & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Farmers’ preferences over alternative AECS designs. Do the ecological conditions influence the willingness to accept result-based contracts?," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334508, Agricultural Economics Society - AES.
    5. Buryk, Stephen & Mead, Doug & Mourato, Susana & Torriti, Jacopo, 2015. "Investigating preferences for dynamic electricity tariffs: The effect of environmental and system benefit disclosure," Energy Policy, Elsevier, vol. 80(C), pages 190-195.
    6. Anders Dugstad & Kristine M. Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2021. "Scope Elasticity of Willingness to pay in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 21-57, September.
    7. Kim, Kyungah & Moon, Sungho & Kim, Junghun, 2023. "How far is it from your home? Strategic policy and management to overcome barriers of introducing fuel-cell power generation facilities," Energy Policy, Elsevier, vol. 182(C).
    8. Mattmann, Matteo & Logar, Ivana & Brouwer, Roy, 2016. "Wind power externalities: A meta-analysis," Ecological Economics, Elsevier, vol. 127(C), pages 23-36.
    9. Contu, Davide & Strazzera, Elisabetta & Mourato, Susana, 2016. "Modeling individual preferences for energy sources: The case of IV generation nuclear energy in Italy," Ecological Economics, Elsevier, vol. 127(C), pages 37-58.
    10. Contu, Davide & Mourato, Susana, 2020. "Complementing choice experiment with contingent valuation data: Individual preferences and views towards IV generation nuclear energy in the UK," Energy Policy, Elsevier, vol. 136(C).
    11. Wen Jin & Hai Jiang & Yimin Liu & Erica Klampfl, 2017. "Do labeled versus unlabeled treatments of alternatives’ names influence stated choice outputs? Results from a mode choice study," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-24, August.
    12. Galina Williams, 2022. "Temporal stability of WTP estimates in labeled and unlabeled choice experiment for emissions reduction options, Queensland, Australia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 533-550, October.

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