Consumer inattention, heuristic thinking and the role of energy labels

Mark Andor, Andreas Gerster and Stephan Sommer

No 671, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: Energy labels have been introduced in many countries to increase consumers' attention to energy use in purchase decisions of durables. In a discrete-choice experiment among about 5,000 households, we implement randomized information treatments to explore how energy labels influence purchasing decisions. Our results show that adding annual operating cost information to the EU energy label promotes the choice of energy-efficient durables. In addition, we find that a majority of participants value efficiency classes beyond the economic value of the underlying energy use differences. Our results further indicate that displaying operating cost affects choices through two distinct channels: it increases the attention to operating cost and reduces the valuation of efficiency class differences.

Keywords: environmental certification; discrete choice experiment; energy efficiency; energy-using durables (search for similar items in EconPapers)
JEL-codes: D03 D12 D83 Q48 Q50 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cbe, nep-dcm, nep-ene, nep-exp and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Consumer Inattention, Heuristic Thinking and the Role of Energy Labels (2020)
Journal Article: Consumer Inattention, Heuristic Thinking and the Role of Energy Labels (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:671

DOI: 10.4419/86788778

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