The Impact of Green Framing on Consumers’ Valuations of Energy-Saving Measures

Marjolein Harmsen - van Hout (), Gaurav Ghosh () and Reinhard Madlener
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Gaurav Ghosh: Ernst & Young GmbH, Postal: Graf-Adolf-Platz 15, 40213 Duesseldorf, Germany

No 7/2013, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: It is a matter of interest to policy-makers and marketers alike to quantify the impact of environmentally friendly messaging upon consumer decision-making behavior. We quantify the value of such messaging or 'green framing' through a choice experiment where subjects choose technical, home-related energy saving measures (ESMs) after valuing the attributes of a set of alternatives. Green framing is tested through a treatment where the one half of the subject pool is exposed to a scenario description where the energy-savings attribute is formulated as an environmental benefit and the other half a scenario description focussing solely on the economic benefit of the energy-savings attribute. Any significant differences in ESM-attribute valuations are interpreted as caused by green framing. For the experiment we perform a representative online survey among 1084 German residents. Mixed logit analysis reveals that ESM valuations are indeed affected by green framing: financial and environmental descriptions of the energy-savings attribute lead to significantly different attribute valuations, which has obvious marketing and policy implications. We also report statistics on ESM-attribute valuations differentiated by e.g. demographics.

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Pages: 22 pages
Date: 2013-04
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2013_007

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