Casting light on energy efficiency: Evidence on consumer inattention and imperfect information

Matthias Rodemeier, Andreas Löschel and Roland Kube

No 93, CAWM Discussion Papers from University of Münster, Münster Center for Economic Policy (MEP)

Abstract: We investigate consumer inattention and imperfect information regarding the financial benefits of energy-efficient lighting using a randomized controlled trial with 1,084 observations. Results suggest that subjects generally know about cost savings of LED bulbs - the central lighting technology of the future - but largely underestimate the magnitude of these savings. As a result, stated willingness-to-pay for an LED bulb increases on average by 2.53€ through the provision of information on expected lifetime costs. Consumers also confound technology attributes of energy-efficient alternatives, which further explains low adoption rates of the LED technology.

Keywords: Imperfect Information; Inattention; Energy Efficiency Gap; Experimental Economics (search for similar items in EconPapers)
JEL-codes: D03 D12 D83 Q41 Q48 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ene and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Casting light on energy efficiency: evidence on consumer inattention and imperfect information (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cawmdp:93

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