Does energy efficiency label alter consumersf purchase decision? A latent class approach on Shanghai data
In this paper we apply hypothetical choice experiments through a field survey in Shanghai of China to examine whether China Energy Efficiency Label affects consumersf choices of air conditioner and refrigerator. A latent class approach is used to observe both heterogeneities among the respondents and product brands. The results suggest that the effect of energy efficiency label on consumersf preferences is twofold. First, more energy efficient air conditioners or refrigerators are preferred by consumers, no matter whether they are with foreign brands or domestic brands and whether they are new or second-hand. Second, energy efficiency label per se is recognized by consumers. In addition, presence of a (hypothetical) label that indicates the electricity billfs difference comparing to a standard model is significantly preferred by the respondents in most of the cases, suggesting that more information provided to consumers makes them much happier. Finally, the class probability weighted willingness to pay values for one rank upgrading in energy efficiency of refrigerator are higher than those of air conditioner, implying that consumers have an incentive to pay more for appliances used more frequently.
|Date of creation:||May 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.osipp.osaka-u.ac.jp/
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.:
- Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
- Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, 05.
- Amacher, Gregory S. & Koskela, Erkki & Ollikainen, Markku, 2004. "Environmental quality competition and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 284-306, March.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Cason, T.N. & Gangadharan, L., 1999.
"Environmental Labeling and Incomplete Consumer Information in Laboratory Markets,"
Department of Economics - Working Papers Series
708, The University of Melbourne.
- Cason, Timothy N. & Gangadharan, Lata, 2002. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 113-134, January.
- Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
- Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
- Junyi Shen, 2005. "A Review of Stated Choice Method," Discussion Papers in Economics and Business 05-27, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Peter Martinsson, 2002.
"Using Choice Experiments for Non-Market Valuation,"
EEPSEA Special and Technical Paper
sp200205t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2002.
- Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Junyi Shen & Tatsuyoshi Saijo, 2007. "The Socioeconomic Determinants of Individual Environmental Concern: Evidence from Shanghai Data," OSIPP Discussion Paper 07E003, Osaka School of International Public Policy, Osaka University.
- Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002.
"Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan,"
Vanderbilt University Department of Economics Working Papers
0203, Vanderbilt University Department of Economics.
- Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
- Banerjee, Abhijit & Solomon, Barry D., 2003. "Eco-labeling for energy efficiency and sustainability: a meta-evaluation of US programs," Energy Policy, Elsevier, vol. 31(2), pages 109-123, January.
- Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
- Wanki Moon & Wojciech J. Florkowski & Bernhard Brückner & Ilona Schonhof, 2002. "Willingness to Pay for Environmental Practices: Implications for Eco-Labeling," Land Economics, University of Wisconsin Press, vol. 78(1), pages 88-102.
- B. Howarth, Richard & Haddad, Brent M. & Paton, Bruce, 2000. "The economics of energy efficiency: insights from voluntary participation programs," Energy Policy, Elsevier, vol. 28(6-7), pages 477-486, June.
- Johnston, Robert J. & Roheim, Cathy A. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
- Cesare Dosi & Michele Moretto, 1999.
"Is Ecolabelling a Reliable Environmental Policy Measure?,"
1999.9, Fondazione Eni Enrico Mattei.
- Cesare Dosi & Michele Moretto, 2001. "Is Ecolabelling a Reliable Environmental Policy Measure?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 113-127, January.
- Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
- Bhat, Chandra R. & Gossen, Rachel, 2004. "A mixed multinomial logit model analysis of weekend recreational episode type choice," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 767-787, November.
- repec:cup:cbooks:9780521788304 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:osp:wpaper:07e005. 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: (Akiko Murashita)
If references are entirely missing, you can add them using this form.