Desired and Undesired Effects of Energy Labels—An Eye-Tracking Study

Abstract

Saving energy is an important pillar for the mitigation of climate change. Electric devices (e.g., freezer and television) are an important player in the residential sector in the final demand for energy. Consumers’ purchase decisions are therefore crucial to successfully reach the energy-efficiency goals. Putting energy labels on products is often considered an adequate way of empowering consumers to make informed purchase decisions. Consequently, this approach should contribute to reducing overall energy consumption. The effectiveness of its measurement depends on consumers’ use and interpretation of the information provided. Despite advances in energy efficiency and a mandatory labeling policy, final energy consumption per capita is in many countries still increasing. This paper provides a systematic analysis of consumers’ reactions to one of the most widely used eco-labels, the European Union (EU) energy label, by using eye-tracking methodology as an objective measurement. The study’s results partially support the EU’s mandatory policy, showing that the energy label triggers attention toward energy information in general. However, the energy label’s effect on consumers’ actual product choices seems to be rather low. The study’s results show that the currently used presentation format on the label is insufficient. The findings suggest that it does not facilitate the integration of energy-related information. Furthermore, the current format can attract consumers to focus more on energy-efficiency information, leading them to disregard information about actual energy consumption. As a result, the final energy consumption may increase because excellent ratings on energy efficiency (e.g., A++) do not automatically imply little consumption. Finally, implications for policymakers and suggestions for further research are discussed.

Boundedly Rational Consumers, Energy and Investment Literacy, and the Display of Information on Household Appliances

“…Both the results presented in Waechter et al (2015) and Hille et al (2015) indicate that the display of an energy-efficiency rating scale on electric appliances may divert attention from the information on actual energy consumption of the products, suggesting that the EU energy label in its current form is used as a decision-making heuristic by many consumers, rather than supporting a rational and informed decision making. 3…”

“…The results of these studies suggest that the information on energy use provided on energy labels tends to be disregarded in the presence of a rating scale. For example, Waechter et al (2015) investigate consumers' attendance to the EU energy label by using eyetracking in a hypothetical experiment on the choice of TVs and freezers in Switzerland. They describe a phenomenon they refer to as 'energy-efficiency fallacy' which goes back to the observation that energy-efficiency information in the form of an efficiency rating may mislead consumers in their evaluation of the energy consumption of a product.…”

Optimal durability in least life cycle cost methods: the case of LED lamps

“…However, there is some general concern regarding the design of energy labelling and how consumers interpret the energy efficiency information (Molenbroek et al 2014;Waechter et al 2015) that implies it can be difficult to also include information on expected lifetime. The first question is whether the producer should account for minimum lifetime, or expected lifetime of the product, and how the choice of parameter can be communicated in an easy-to-understand fashion to consumers.…”

“…Waechter et al 2015;Dalhammar et al 2018). For example, there are indications that this partly depends on the product group, as consumers are more likely to consider energy labelling for some product purchases than others.…”

What makes an effective energy efficiency label? Assessing the performance of energy labels through eye-tracking experiments in Ireland

“…In one of the very few studies looking at the role of energy labels, in this case in both the white goods and television markets in Switzerland, Waechter et al (2015) utilised eye-tracking technology to assess the levels of attention paid to various specifications and information. The results of their research highlighted the role that eye-tracking can play in assessing energy information, and helped establish a new research field that this research builds upon.…”