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

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Listed:
  • James Carroll

    (Central Bank of Ireland)

  • Eleanor Denny

    (Trinity College Dublin
    Harvard Environmental Economics Program, Harvard University
    Harvard University)

  • Seán Lyons

    (Trinity College Dublin
    Economic and Social Research Institute)

Abstract

Household failure to minimize the total costs of energy-consuming investments has become known as the “energy efficiency gap.” This paper explores if this is partly the result of imperfect information related to future energy costs. We test this hypothesis by adding 5-year consumption cost labels to the tumble dryer lineup of four outlets of an Irish electrical retailer. Although we observe a reduction in the average energy consumption of dryer sales, our analysis does not show a statistically significant effect. However, we highlight a number of experimental limitations in our trial which potentially undermine this treatment effect. In addition, mixed findings from previous research suggest that further trials should be conducted before “lifetime” energy cost labelling is removed from potential policy options to increase the energy efficiency of household appliances.

Suggested Citation

  • James Carroll & Eleanor Denny & Seán Lyons, 2016. "The Effects of Energy Cost Labelling on Appliance Purchasing Decisions: Trial Results from Ireland," Journal of Consumer Policy, Springer, vol. 39(1), pages 23-40, March.
    • Handle: RePEc:kap:jcopol:v:39:y:2016:i:1:d:10.1007_s10603-015-9306-4
    DOI: 10.1007/s10603-015-9306-4
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    2. Stefano Ceolotto & Eleanor Denny, 2021. "Putting a new 'spin' on energy labels: measuring the impact of reframing energy efficiency on tumble dryer choices in a multi-country experiment," Trinity Economics Papers tep1521, Trinity College Dublin, Department of Economics.
    3. Rey-Moreno, Manuel & Medina-Molina, Cayetano, 2020. "Dual models and technological platforms for efficient management of water consumption," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    4. Stadelmann, Marcel & Schubert, Renate, 2018. "How Do Different Designs of Energy Labels Influence Purchases of Household Appliances? A Field Study in Switzerland," Ecological Economics, Elsevier, vol. 144(C), pages 112-123.
    5. Cicconi, Paolo & Landi, Daniele & Germani, Michele & Russo, Anna Costanza, 2017. "A support approach for the conceptual design of energy-efficient cooker hoods," Applied Energy, Elsevier, vol. 206(C), pages 222-239.
    6. James Carroll & Eleanor Denny & Ronan C. Lyons, 2020. "Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment," Trinity Economics Papers tep1520, Trinity College Dublin, Department of Economics.
    7. Dominik Bär & Stefan Feuerriegel & Ting Li & Markus Weinmann, 2023. "Message framing to promote solar panels," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    8. S. Ceolotto & E. Denny, 2024. "Putting a New ‘Spin’ on Energy Information: Measuring the Impact of Reframing Energy Efficiency Information on Tumble Dryer Choices in a Multi-country Experiment," Journal of Consumer Policy, Springer, vol. 47(1), pages 51-108, March.
    9. D. Nishijima & M. Oguchi, 2024. "Comparing Product Lifetime Extensions by Enhancing Consumers’ Expected Product Lifetime Among Different Durable Products," Journal of Consumer Policy, Springer, vol. 47(2), pages 223-239, June.
    10. McGowan, Féidhlim P. & Denny, Eleanor & Lunn, Peter D., 2023. "Looking beyond time preference: Testing potential causes of low willingness to pay for fuel economy improvements," Resource and Energy Economics, Elsevier, vol. 75(C).
    11. Löfgren, Åsa & Nordblom, Katarina, 2020. "A theoretical framework of decision making explaining the mechanisms of nudging," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 1-12.
    12. E. Denny, 2022. "Long-term Energy Cost Labelling for Appliances: Evidence from a Randomised Controlled Trial in Ireland," Journal of Consumer Policy, Springer, vol. 45(3), pages 369-409, September.
    13. Amaia de Ayala & María del Mar Solà, 2022. "Assessing the EU Energy Efficiency Label for Appliances: Issues, Potential Improvements and Challenges," Energies, MDPI, vol. 15(12), pages 1-25, June.

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