The Impact of Green Framing on Consumers’ Valuations of Energy-Saving Measures

FCN Working Paper No. 7/2013

Posted: 2 Feb 2014

See all articles by Marjolein J. W. Harmsen - van Hout

Marjolein J. W. Harmsen - van Hout

Lehrstuhl für Wirtschaftswissenschaften, insb. Energieökonomik; Institute for Future Energy Consumer Needs and Behavior (FCN); E.ON Energy Research Center; RWTH Aachen

Gaurav S. Ghosh

Pennsylvania State University - College of Agricultural Sciences - Department of Agricultural Economics and Rural Sociology

Reinhard Madlener

RWTH Aachen University

Date Written: April 2013

Abstract

It is a matter of interest to policy-makers and marketers alike to quantify the impact of environmentally friendly messaging upon consumer decision-making behavior. We quantify the value of such messaging or 'green framing' through a choice experiment where subjects choose technical, home-related energy saving measures (ESMs) after valuing the attributes of a set of alternatives. Green framing is tested through a treatment where the one half of the subject pool is exposed to a scenario description where the energy-savings attribute is formulated as an environmental benefit and the other half a scenario description focusing solely on the economic benefit of the energy-savings attribute. Any significant differences in ESM-attribute valuations are interpreted as caused by green framing. For the experiment we perform a representative online survey among 1084 German residents. Mixed logit analysis reveals that ESM valuations are indeed affected by green framing: financial and environmental descriptions of the energy-savings attribute lead to significantly different attribute valuations, which has obvious marketing and policy implications. We also report statistics on ESM-attribute valuations differentiated by e.g. demographics.

Suggested Citation

Harmsen - van Hout, Marjolein J. W. and Ghosh, Gaurav S. and Madlener, Reinhard, The Impact of Green Framing on Consumers’ Valuations of Energy-Saving Measures (April 2013). FCN Working Paper No. 7/2013 . Available at SSRN: https://ssrn.com/abstract=2388712 or http://dx.doi.org/10.2139/ssrn.2388712

Marjolein J. W. Harmsen - van Hout (Contact Author)

Lehrstuhl für Wirtschaftswissenschaften, insb. Energieökonomik; Institute for Future Energy Consumer Needs and Behavior (FCN); E.ON Energy Research Center; RWTH Aachen ( email )

Aachen
Germany

HOME PAGE: http://www.eonerc.rwth-aachen.de/aw/cms/website/themen/~shg/fcn/lang/en/

Gaurav S. Ghosh

Pennsylvania State University - College of Agricultural Sciences - Department of Agricultural Economics and Rural Sociology ( email )

University Park, PA 16802-3306
United States

Reinhard Madlener

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustraße 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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