"Show Me the Energy Costs": Short and Long-term Energy Cost Disclosure Effects on Willingness-to-pay for Residential Energy Efficiency

James Carroll, Claudia Aravena, Marco Boeri, and Eleanor Denny

The Energy Journal, 2022, vol. Volume 43, issue Number 2

Abstract: Imperfect information on future energy costs can lower the demand for more energy efficient technologies, with clear implications for energy supply, emissions and climate change. These hypotheses are explored using a randomised discrete choice experiment for property rental decisions. Results show that when energy consumption is expressed in physical units (as per the current EU labels) the willingness-to-pay for energy efficiency improvements is small and marginally significant. While bimonthly energy cost information displayed in monetary terms has no effect on the valuation of energy efficiency, annual monetary energy cost information led to a significant increase. This is the first paper to compare short and long-term point of sale energy cost information for household property decisions. There are clear implications for labelling policy for propertiesframing energy consumption according to long-term monetary cost increases the demand for energy efficiency.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=3806 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:ej43-2-denny

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().