Energy labels and heuristic decision-making: The role of cognition and energy literacy

Shutong He, Julia Blasch, Pieter van Beukering and Junfeng Wang

Energy Economics, 2022, vol. 114, issue C

Abstract: Energy labels are used worldwide to overcome the inefficiency in household energy use. Presenting energy efficiency in grade-like categories has been found to induce heuristic decision-making, known as the “class valuation effect”. This study investigates whether visualising energy efficiency using a continuous-scale label increases consumers’ consciousness when purchasing appliances. We examine this question in an online survey with randomised decision tasks conducted in China and the Netherlands. In the Dutch sample, the effectiveness of continuous-scale labels depends on individuals’ holistic cognitive tendency and the type of comparison they are faced with, whereas the Chinese sample is not sensitive to these moderators. Moreover, energy literacy shows mixed influence on individual decisions. Results suggest that representing energy efficiency on continuous scales can be used as supportive visual information to facilitate purchase decisions. Regarding energy education, knowledge that directly links to daily energy use seems to translate well into consumers’ conscious decisions.

Keywords: Energy label; Household decision-making; Heuristics; Cognitive style; Energy literacy (search for similar items in EconPapers)
JEL-codes: D12 D91 Q41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:114:y:2022:i:c:s0140988322004133

DOI: 10.1016/j.eneco.2022.106279

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