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Consumer response to energy label policies: Evidence from the Brazilian energy label program

Cristian Huse, Claudio Lucinda and Andre Ribeiro Cardoso

Energy Policy, 2020, vol. 138, issue C

Abstract: The PBE program made the adoption of energy labels mandatory in the Brazilian refrigerator market. In this paper, we examine the effects of PBE using data from a nationally representative sample of households and a structural model of appliance choice. We document a modest increase in the valuation of energy costs by Brazilian consumers. However, the program is unable to eliminate the energy efficiency gap, in that consumers undervalue energy costs both pre-and post-PBE. Moreover, our policy simulation documents little product switching and heterogeneity in responses. All in all, while the PBE program aimed to both reduce energy consumption and increase energy efficiency, we can only claim robust evidence of the latter.

Keywords: Energy demand; Energy efficiency; Energy efficiency gap; Energy label; Information programs; Refrigerators (search for similar items in EconPapers)
JEL-codes: D12 D83 L15 L68 Q40 Q48 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.enpol.2019.111207

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