The Effects of Energy Cost Labelling on Appliance Purchasing Decisions: Trial Results from Ireland

Carroll, James; Denny, Eleanor; Lyons, Seán

doi:10.1007/s10603-015-9306-4

Cited by 28 publications

(14 citation statements)

References 29 publications

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“…Several studies highlight the importance of labelling schemes in preventing informational failures and consequently addressing the EE gap (Carroll et al 2016 ; Lucas and Galarraga 2015 ). We therefore also analyse the role of ecodesign 6 and energy labelling 7 regulations used in HVAC systems.…”

Section: Resultsmentioning

confidence: 99%

Factors affecting energy-efficiency investment in the hotel industry: survey results from Spain

et al. 2021

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Increasing energy efficiency is a major way of saving energy and thus reducing energy expenses. However, adoption of energy efficiency is generally low, as demonstrated by the energy efficiency gap. To understand that gap, this paper analyses the factors that affect how the energy efficiency attribute is rated in investment in heating, ventilation and air conditioning (HVAC) systems in the hotel industry in Spain. A survey conducted on two hundred owners of hotels, hostels and holiday cottages (referred to jointly here for the sake of convenience as “the hotel industry”) shows that the value placed on energy efficiency is influenced not just by climate conditions, environmental concern and type of hotel but also by other attributes of the HVAC system such as brand reliability, price and performance. The hotel industry may also be identifying EE as a proxy for quality rather than savings. Designing the right energy-efficiency policy entails accounting for potential responses by agents, and this analysis helps identify those drivers to which they may or may not respond.

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Section: Resultsmentioning

confidence: 99%

Factors affecting energy-efficiency investment in the hotel industry: survey results from Spain

et al. 2021

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“…Energy labelling in the European Union (EU) dates back more than 25 years: it was first implemented in 1994 for appliances in the application of Directive (1992/75/ECC) and extended to cars in 1999 with Directive (1999/94/EC). Energy labels are designed to highlight the EE of a good and consequently reduce the information gap (Carroll et al 2016;Lucas and Galarraga 2015). They provide information on the energy consumption of an energy-related product, on its use of other resources (such as water) and on comfort levels (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…There is a growing body of research on how to improve EE labels so as to encourage energy-efficient purchases by providing running cost information (Carroll et al 2016;Codagnone et al 2016;Kallbekken et al 2013), health or environment-related information (Asensio and Delmas 2016) or by improving the design of labels to take behavioural failures into account (Waechter et al 2016). However, other informational and behavioural factors are also likely to mark down the role of these labels.…”

Section: Introductionmentioning

confidence: 99%

Consumers’ preferences regarding energy efficiency: a qualitative analysis based on the household and services sectors in Spain

et al. 2020

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Informational failures frequently lead consumers to make non-optimal energy-efficient purchasing decisions. Energy efficiency labels seek to influence consumer behaviour at the point of sale by reducing informational failures regarding energy efficiency. However, several informational and behavioural factors contribute to the energy efficiency gap and could render label-oriented policies useless. The purchasing decision model of Allcott and Greenstone (The Journal of Economic Perspectives, 26, 3–28, 2012) is used here to explore the different factors that influence purchasing decisions and understand (i) the importance of energy consumption compared to other attributes; (ii) how consumers weight energy savings and (iii) what other benefits and costs influence the purchase of energy-efficient goods. The analysis reported here is based on qualitative research methods and is conducted in the household and service sectors (the accommodation sector and private service companies), for appliances, heating and cooling systems and cars in Spain. Results show that (i) there is still an informational gap regarding energy labels and (ii) bounded rationality and end-user behaviour are important limiting factors for the purchase of energy-efficient goods in Spain.

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“…A similar field experiment was run by Allcott and Sweeney [42], who showed that energy cost information per year and sales incentives need to be treated jointly to boost energy-efficient purchases. By contrast, a field experiment conducted by Carroll et al [43] found that providing 5-year energy cost information has no effect on tumble dryers. Finally, Skourtos et al [19] ran a choice-based experiment in Greece and found that including the annual operating cost of fridges has no effect on consumers' choices.…”

Section: Discrete Choice Experiments Televisionsmentioning

confidence: 86%

Assessing the EU Energy Efficiency Label for Appliances: Issues, Potential Improvements and Challenges

Ayala

Solà

2022

Energies

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The EU Energy Efficiency (EE) label for appliances, readjusted in March 2021 (Directive 2017/1369/EU), is a key instrument for nudging consumers towards more energy-efficient purchases. However, its effectiveness depends on its design, the information provided and consumers’ understanding of and trust in it. This paper seeks to contribute to the assessment of the EE label for appliances and to identify issues, potential improvements and challenges for successfully nudging consumers towards highly energy-efficient choices. To that end, 33 in-depth interviews have been conducted with three different groups (citizens, appliance retailers and experts in energy) to ascertain the opinions and experiences of different agents as to consumers’ preferences and opinions on EE and energy consumption. We focus on purchasing decision-making by Spanish consumers for the three main appliances: washing machines, fridges and dishwashers. The EE label for appliances seems to be well-known and reliable for consumers. The main weakness lies in people’s understanding of its content rather than in its design. The coloured alphabetical EE scale seems to be well understood and the restored A–G scale of the readjusted label positively valued. However, we find comprehension issues with regard to the information on energy consumption and the technical data at the bottom of the label. Monetary information on energy consumption seems to facilitate consumers’ understanding, but it is technically challenging due to the complexity of the unit of measurement. Results are discussed, taking into account the relevant literature.

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The Effects of Energy Cost Labelling on Appliance Purchasing Decisions: Trial Results from Ireland

Cited by 28 publications

References 29 publications

Factors affecting energy-efficiency investment in the hotel industry: survey results from Spain

Factors affecting energy-efficiency investment in the hotel industry: survey results from Spain

Consumers’ preferences regarding energy efficiency: a qualitative analysis based on the household and services sectors in Spain

Assessing the EU Energy Efficiency Label for Appliances: Issues, Potential Improvements and Challenges

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