The Impact of Personalised Digital Information on the Efficiency of Vehicle Choices in Developing Countries

Massimo Filippini, Nilkanth Kumar and Suchita Srinivasan ()
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Suchita Srinivasan: Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland

No 24/395, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: Information on operating costs can enable potential buyers to purchase more fuelefficient vehicles. We test this hypothesis with a randomised controlled trial in a developing country, Nepal, using personalised information provision on a unique webbased platform. We find that receiving information on five-year operating cost savings improved the fuel economy of motorcycles that respondents selected on the platform (stated preference), and the models that they actually purchased (revealed preference), compared to receiving fuel economy information. Furthermore, the treatment was particularly effective with respondents who displayed behavioural anomalies. Our study provides novel evidence on the effectiveness of information provision in low-educationsettings, where the opportunity cost of collecting information may be high.

Keywords: Fuel economy; Operating costs; Energy labels; Behavioural anomalies; Randomised informational intervention; Nepal (search for similar items in EconPapers)
JEL-codes: D1 D8 Q4 Q5 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2024-08
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