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

Matthias Rodemeier, Andreas Löschel and Roland Kube

Applied Economics Letters, 2017, vol. 24, issue 21, 1575-1587

Abstract: We investigate consumer inattention and imperfect information regarding the financial benefits of energy-efficient lighting using a randomized controlled trial with 1084 observations. Results suggest that subjects generally know about cost savings of light-emitting diode (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. Additional evidence hints at further consumer confusion about attribute differences between lighting technologies.

Date: 2017
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Working Paper: Casting light on energy efficiency: Evidence on consumer inattention and imperfect information (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:24:y:2017:i:21:p:1575-1587

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DOI: 10.1080/13504851.2017.1332742

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