Casting light on energy efficiency: Evidence on consumer inattention and imperfect information
Andreas Löschel () and
No 93, MEP Discussion Papers from University of Münster, Münster Center for Economic Policy (MEP)
We investigate consumer inattention and imperfect information regarding the financial benefits of energy-efficient lighting using a randomized controlled trial with 1,084 observations. Results suggest that subjects generally know about cost savings of 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. Consumers also confound technology attributes of energy-efficient alternatives, which further explains low adoption rates of the LED technology.
Keywords: Imperfect Information; Inattention; Energy Efficiency Gap; Experimental Economics (search for similar items in EconPapers)
JEL-codes: D03 D12 D83 Q41 Q48 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-exp
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Journal Article: Casting light on energy efficiency: evidence on consumer inattention and imperfect information (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cawmdp:93
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