Loads of green washing—can behavioural economics increase willingness-to-pay for efficient washing machines in the UK?

Joe Bull

Energy Policy, 2012, vol. 50, issue C, 242-252

Abstract: The EU energy efficiency labelling scheme has successfully increased demand for efficient appliances by providing a prominent letter rating to consumers during their product search. Behavioural economics (BE) suggests the adoption of efficient appliances could be accelerated further by: (i) monetising efficiency, (ii) directly communicating the link between efficiency and carbon emissions, (iii) communicating the long-term (e.g., operational life) financial and environmental impact of product choices, and, (iv) framing the information as avoided losses (‘extra’) rather than gains (‘savings’). This study tested these hypotheses via an online, stated preference survey of 465 UK residents using actual market pricing and efficiency data for washing machines. The provision of information about either running costs or running emissions did encourage selection of more expensive and efficient products (strongly correlated variables in the choice set and actual market) (p<.001, r=.30–.41) with no statistically significant difference between their impact. Providing lifetime running cost information also nudged respondents towards more expensive, efficient products than annual information (p=.006–.027, r=.15–.18). Finally, loss-framed running emissions information encouraged selection of more expensive, efficient products than gain-framed information (p<.05, r=.13–.16). The EU label is an impracticable means of communication, but digital communication channels (e.g., price comparison websites) may offer potential for inexpensive localisation and personalisation of the information. The results suggest that successful communication could benefit the private sector whilst making a contribution to reducing carbon emissions.

Keywords: Household appliances; Energy efficiency; Behavioural economics (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:50:y:2012:i:c:p:242-252

DOI: 10.1016/j.enpol.2012.07.001

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