EconPapers    
Economics at your fingertips  
 

Energy-efficient design, consumer awareness, and public policy

Carmen Arguedas and Sandra Rousseau ()

SERIEs: Journal of the Spanish Economic Association, 2021, vol. 12, issue 2, No 4, 254 pages

Abstract: Abstract To facilitate the energy transition, regulators can choose between several policy options to stimulate energy-efficient design by firms. One possibility is to target firms directly through standards or subsidies. Alternatively, it is possible to influence firms indirectly by targeting firms’ stakeholders and raising consumer awareness through information campaigns and education. In this paper, we focus specifically on the pivotal role of consumers and we investigate the effectiveness of subsidies, product standards, and education in improving firms’ environmental performance through energy-efficient product design. In particular, we investigate the importance of the interaction effect between the regulation and consumers’ environmental awareness under different market structures. We find that a policy based on a product standard can counteract the negative effects of crowding-out consumers’ intrinsic motivation in a monopoly setting, although this counteracting effect is less powerful under a duopoly. However, a subsidy does not provide such a backup system and the full effect of crowding-out will be visible.

Keywords: Environmental policy instruments; Energy-efficient design; Crowding-in/crowding-out; Consumer awareness (search for similar items in EconPapers)
JEL-codes: C72 D43 H23 L51 Q58 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s13209-020-00225-1 Abstract (text/html)

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:spr:series:v:12:y:2021:i:2:d:10.1007_s13209-020-00225-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13209

DOI: 10.1007/s13209-020-00225-1

Access Statistics for this article

SERIEs: Journal of the Spanish Economic Association is currently edited by Nezih Guner

More articles in SERIEs: Journal of the Spanish Economic Association from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-06
Handle: RePEc:spr:series:v:12:y:2021:i:2:d:10.1007_s13209-020-00225-1