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Factors Influencing Willingness-to-Pay for the Energy Star Label

Author

Listed:
  • Ward, David O.
  • Clark, Christopher D.
  • Jensen, Kimberly L.
  • Russell, Clifford S.
  • Yen, Steven T.

Abstract

In the United States, nearly 17 percent of greenhouse gas emissions come from residential energy use. Increases in energy efficiency for the residential sector can generate significant energy savings and emissions reductions. Consumer labels, such as USEPA’s Energy Star, promote conservation by providing consumers with information on energy usage for household appliances. This study examines how the Energy Star label affects consumer preferences for refrigerators. An online survey of a national sample of adults suggest that consumers are, on average, willing to pay an extra $249.82 to $349.30 for a refrigerator that has been awarded the Energy Star label. Furthermore, the results provide evidence that willingness to pay was motivated by both private (energy cost savings) and public (environmental) benefits.

Suggested Citation

  • Ward, David O. & Clark, Christopher D. & Jensen, Kimberly L. & Russell, Clifford S. & Yen, Steven T., 2010. "Factors Influencing Willingness-to-Pay for the Energy Star Label," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61141, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61141
    DOI: 10.22004/ag.econ.61141
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    References listed on IDEAS

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    1. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
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    Cited by:

    1. Yeboah, Osei-Agyeman & Goktepe, Ipek & Naanwaab, Cephas B. & Kyei, Foster Ofori, 2012. "Consumers’ Willingness to Pay for Bacteriophage Technology Treated Fresh Produce," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119733, Southern Agricultural Economics Association.
    2. Heng, Yan & Peterson, Hikaru Hanawa & Li, Xianghong, 2012. "Consumers’ Preferences for Shell Eggs Regarding Laying Hen Welfare," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124592, Agricultural and Applied Economics Association.
    3. Kusaka, Wakana & Kojima, Michikazu & Watanabe, Mariko, 2012. "Environmental consciousness, economic gain and consumer choice of energy efficient appliances in Thailand, China and India," IDE Discussion Papers 345, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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