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The Impact of Personalised Digital Information on the Efficiency of Vehicle Choices in Developing Countries

Author

Listed:
  • Massimo Filippini

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

  • Nilkanth Kumar

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

  • Suchita Srinivasan

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

Abstract

Information on operating costs can enable potential buyers to purchase more fuelefficient vehicles. We test this hypothesis with a randomised controlled trial in a developing country, Nepal, using personalised information provision on a unique webbased platform. We find that receiving information on five-year operating cost savings improved the fuel economy of motorcycles that respondents selected on the platform (stated preference), and the models that they actually purchased (revealed preference), compared to receiving fuel economy information. Furthermore, the treatment was particularly effective with respondents who displayed behavioural anomalies. Our study provides novel evidence on the effectiveness of information provision in low-educationsettings, where the opportunity cost of collecting information may be high.

Suggested Citation

  • Massimo Filippini & Nilkanth Kumar & Suchita Srinivasan, 2024. "The Impact of Personalised Digital Information on the Efficiency of Vehicle Choices in Developing Countries," CER-ETH Economics working paper series 24/395, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:24-395
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    More about this item

    Keywords

    Fuel economy; Operating costs; Energy labels; Behavioural anomalies; Randomised informational intervention; Nepal;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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