4.7 Article

How effective is the European Union energy label? Evidence from a real-stakes experiment

Journal

ENVIRONMENTAL RESEARCH LETTERS
Volume 14, Issue 4, Pages -

Publisher

IOP PUBLISHING LTD
DOI: 10.1088/1748-9326/ab05fe

Keywords

artefactual field experiment; behavioral economics; climate policies; environmental certification; carbon mitigation policies

Funding

  1. SUN Institute Environment Sustainability
  2. Swiss National Science Foundation (SNF) [407140_153675]
  3. Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) [CRC TR 224]
  4. Collaborative Research Center Statistical Modeling of Nonlinear Dynamic Processes of the DFG [SFB 823]
  5. Swiss National Science Foundation (SNF) [407140_153675] Funding Source: Swiss National Science Foundation (SNF)

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Imperfect information and inattention can lead consumers to undervalue the energy efficiency of products, contributing to growing environmental problems and climate change. To nudge individuals towards energy efficiency, environmental certification schemes, such as the European Union (EU) energy label, present grade-like efficiency classes. In a real-stakes randomized controlled trial, we contrast this approach with a control condition that gives no energy-related information and an alternative treatment condition that provides detailed information on the lifetime cost of energy-using durables. Our results show that the EU energy label does not increase demand for energy-efficient products over a control condition. By contrast, lifetime-cost information increases the willingness-to-pay for energy efficiency considerably.

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