Nudging Energy Efficiency Behavior: Role of Information Labels

Duke Environmental and Energy Economic Working Paper EE 13-03

42 Pages Posted: 19 Jul 2014

See all articles by Richard G. Newell

Richard G. Newell

Duke University - Nicholas School of Environment; National Bureau of Economic Research (NBER); Resources for the Future

Juha Siikamäki

International Union for Conservation of Nature

Date Written: August 2013

Abstract

This report evaluates the effectiveness of energy efficiency labels in guiding household decisions. Using a choice experiment with alternative labels, the authors find that simple information on the economic value of saving energy is the most important element guiding more cost-efficient investments in appliance energy efficiency; information on physical energy use and carbon emissions has no significant additional value. They also find that the degree to which the current EnergyGuide label guides cost-efficient decisions depends on the assumed discount rate. These results reinforce the importance of intertemporal choice and discounting for understanding individual behavior and guiding policy.

Suggested Citation

Newell, Richard G. and Siikamäki, Juha, Nudging Energy Efficiency Behavior: Role of Information Labels (August 2013). Duke Environmental and Energy Economic Working Paper EE 13-03, Available at SSRN: https://ssrn.com/abstract=2467676 or http://dx.doi.org/10.2139/ssrn.2467676

Richard G. Newell (Contact Author)

Duke University - Nicholas School of Environment ( email )

Box 90228
Durham, NC 27708-0328
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919-681-8865 (Phone)

National Bureau of Economic Research (NBER) ( email )

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Resources for the Future ( email )

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Washington, DC 20036
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Juha Siikamäki

International Union for Conservation of Nature ( email )

Washington, DC 20036
United States

HOME PAGE: http://www.iunc.org

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