2019
DOI: 10.1088/1748-9326/ab05fe
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How effective is the European Union energy label? Evidence from a real-stakes experiment

Abstract: 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 condi… Show more

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Cited by 18 publications
(11 citation statements)
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“…The relevance of such information substitution critically depends on the supply side and is moderate when producers mainly offer appliances that slightly exceed efficiency class thresholds, as is frequent practice. In addition, our findings on how class valuation and information substitu-tion effects can potentially offset each other help to rationalize why previous studies find only negligible effects of showing efficiency classes (Andor et al, 2019) and are thus important for understanding the effectiveness of energy labels.…”
Section: Discussionsupporting
confidence: 56%
See 2 more Smart Citations
“…The relevance of such information substitution critically depends on the supply side and is moderate when producers mainly offer appliances that slightly exceed efficiency class thresholds, as is frequent practice. In addition, our findings on how class valuation and information substitu-tion effects can potentially offset each other help to rationalize why previous studies find only negligible effects of showing efficiency classes (Andor et al, 2019) and are thus important for understanding the effectiveness of energy labels.…”
Section: Discussionsupporting
confidence: 56%
“…A promising strategy to overcome such information substitution is the provision of operating cost information on the EU label, which has been suggested by some recent studies (Andor et al 2019, Andor et al 2017and Blasch et al 2017. By reducing cognitive effort, information on operating costs simplifies investment decisions and mitigates the attention crowding-out effect of energy efficiency classes.…”
Section: Discussionmentioning
confidence: 99%
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“…So far, the use of labels that include a color scale has been implemented on light-bulb packages only regarding the energy-efficiency characteristics of the bulbs [11]. However, in the current study, our main objective is to reveal whether attaching health-related red/green traffic light icons (TLI) on light bulbs influences consumers' preferences towards choosing the healthier bulb and avoiding the energy-efficient bulb, which has been shown to be unhealthy [12].…”
Section: Introductionmentioning
confidence: 97%
“…Both in the European and American markets, it is mandatory to apply an Energy Label/Energy Star sticker on every product that indicates its energy efficiency so that customers can make an informed choice of the products their are buying. Of course, Energy Label/Energy Star influences consumer choice in making a purchase [3], making it extremely important for the manufacturers to get high scores on such rankings.…”
Section: Introductionmentioning
confidence: 99%