Consumers' Preferences for Energy-Efficient Air Conditioners in a Developing Country: A Discrete Choice Experiment Using Eco Labels

Miwa Nakai, Majah-Leah Ravago, Yoichi Miyaoka, Kiyoshi Saito and Toshi Arimura

No e166, Working Papers from Tokyo Center for Economic Research

Abstract: In this paper, we aim to examine consumer behaviour concerning energy-efficient appliances in the context of a developing country. As a case study, we use the Philippines, one of the earliest countries in Southeast Asia to introduce appliance test standards. We conducted face-to-face surveys of potential purchasers of air conditioners (ACs) in Metropolitan Manila, where the percentage of AC owners has increased as a result of economic growth. The survey includes choice experiment questions to estimate preferences for AC attributes, including purchase price, additional functions, country of manufacturer and energy efficiency information. In addition, we examine the types of information on eco labels that encourage consumers to choose an energy-efficient AC, including the default option of an energy efficiency ratio, estimated cost per hour or an energy star rating. Our choice experiment analysis reveals that energy-efficient ACs made by domestic manufacturers with smart functions are more likely to be chosen by consumers. We find that the probability of an energy-efficient AC being chosen can be increased by approximately 15% if the eco label uses an energy star rating rather than an energy efficiency ratio.

Pages: 29 pages
Date: 2022-01
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-env, nep-exp, nep-his and nep-sea
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