Nudging Energy Efficiency Behavior: Role of Information Labels
Duke Environmental and Energy Economic Working Paper EE 13-03
42 Pages Posted: 19 Jul 2014
Date Written: August 2013
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.
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