Are Consumers Poorly-Informed about Fuel Economy? Evidence from Two Experiments
It has long been argued that people are poorly-informed about and inattentive to fuel economy when buying cars, and that this causes us to buy low-fuel economy vehicles despite our own best interest. We test this assertion by running two experiments providing fuel economy information to people shopping for new vehicles. We find zero statistical or economic effect of information on average fuel economy of vehicles purchased. In the context of a simple optimal policy model, the estimates suggest that imperfect information and inattention are not valid as significant justifications for fuel economy standards at current or planned levels.
|Date of creation:||Jan 2017|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(01), pages 25-46, December.
- Pascaline Dupas, 2011.
"Do Teenagers Respond to HIV Risk Information? Evidence from a Field Experiment in Kenya,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 3(1), pages 1-34, January.
- Pascaline Dupas, 2009. "Do Teenagers Respond to HIV Risk Information? Evidence from a Field Experiment in Kenya," NBER Working Papers 14707, National Bureau of Economic Research, Inc.
- Hunt Allcott, 2013. "The Welfare Effects of Misperceived Product Costs: Data and Calibrations from the Automobile Market," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 30-66, August.
- ITO Koichiro & James M. SALLEE, 2014.
"The Economics of Attribute-Based Regulation: Theory and evidence from fuel-economy standards,"
14057, Research Institute of Economy, Trade and Industry (RIETI).
- Koichiro Ito & James M. Sallee, 2014. "The Economics of Attribute-Based Regulation: Theory and Evidence from Fuel-Economy Standards," NBER Working Papers 20500, National Bureau of Economic Research, Inc.
- Sendhil Mullainathan & Joshua Schwartzstein & William J. Congdon, 2012. "A Reduced-Form Approach to Behavioral Public Finance," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 511-540, 07.
- Lucas W. Davis & Gilbert E. Metcalf, 2014.
"Does Better Information Lead to Better Choices? Evidence from Energy-Efficiency Labels,"
Discussion Papers Series, Department of Economics, Tufts University
0788, Department of Economics, Tufts University.
- Lucas W. Davis & Gilbert E. Metcalf, 2016. "Does Better Information Lead to Better Choices? Evidence from Energy-Efficiency Labels," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 589-625.
- Lucas W. Davis & Gilbert E. Metcalf, 2014. "Does Better Information Lead to Better Choices? Evidence from Energy-Efficiency Labels," NBER Working Papers 20720, National Bureau of Economic Research, Inc.
- Meghan R. Busse & Christopher R. Knittel & Florian Zettelmeyer, 2013. "Are Consumers Myopic? Evidence from New and Used Car Purchases," American Economic Review, American Economic Association, vol. 103(1), pages 220-256, February.
- Jin, Ginger Zhe & Sorensen, Alan T., 2006. "Information and consumer choice: The value of publicized health plan ratings," Journal of Health Economics, Elsevier, vol. 25(2), pages 248-275, March.
- Esther Duflo & Emmanuel Saez, 2003. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 815-842.
- Katrina Jessoe & David Rapson, 2015. "Commercial and Industrial Demand Response Under Mandatory Time-of-Use Electricity Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 63(3), pages 397-421, 09.
- Saurabh Bhargava & Dayanand Manoli, 2015. "Psychological Frictions and the Incomplete Take-Up of Social Benefits: Evidence from an IRS Field Experiment," American Economic Review, American Economic Association, vol. 105(11), pages 3489-3529, November.
- Esther Duflo & Emmanuel Saez, 2003. "The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment," Framed Field Experiments 00141, The Field Experiments Website.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:23076. 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: ()
If references are entirely missing, you can add them using this form.