Labels as Nudges? An Experimental Study of Car Eco-Labels

Documentos FCE-CID Escuela de Economía No. 69

134 Pages Posted: 1 Apr 2016

See all articles by Cristiano Codagnone

Cristiano Codagnone

Università degli studi di Milano, Dipartimento di Scienze Sociali e Politiche; Universitat Oberta de Catalunya, Estudis de Ciències de la Informació i de la Comunicació

Francesco Bogliacino

National University of Colombia - Department of Economics

Giuseppe Alessandro Veltri

University of Trento

Francisco Lupiáñez-Villanueva

Open University of Catalunya (UOC) (Open University of Catalonia)

Andriy Ivchenko

Expilab Research S.L.

George Gaskell

London School of Economics & Political Science (LSE)

Pietro Ortoleva

Princeton University - Department of Economics

Francesco Mureddu

Open University of Catalunya (UOC) (Open University of Catalonia)

Date Written: March 16, 2016

Abstract

This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. Being embedded into a setting, which is designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.

Keywords: eco-label; nudge; willingness to pay; fuel economy; experiments

JEL Classification: C9, D3, Q56, Q58

Suggested Citation

Codagnone, Cristiano and Bogliacino, Francesco and Veltri, Giuseppe Alessandro and Lupiáñez-Villanueva, Francisco and Ivchenko, Andriy and Gaskell, George and Ortoleva, Pietro and Mureddu, Francesco, Labels as Nudges? An Experimental Study of Car Eco-Labels (March 16, 2016). Documentos FCE-CID Escuela de Economía No. 69, Available at SSRN: https://ssrn.com/abstract=2755763 or http://dx.doi.org/10.2139/ssrn.2755763

Cristiano Codagnone

Università degli studi di Milano, Dipartimento di Scienze Sociali e Politiche ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Universitat Oberta de Catalunya, Estudis de Ciències de la Informació i de la Comunicació ( email )

Tibidabo Av. 39-43
08035 Barcelona, Barcelona 08035
Spain

Francesco Bogliacino (Contact Author)

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

Giuseppe Alessandro Veltri

University of Trento ( email )

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

Francisco Lupiáñez-Villanueva

Open University of Catalunya (UOC) (Open University of Catalonia) ( email )

Rambla Poble Nou, 156
Barcelona, Barcelona 08018
Spain

Andriy Ivchenko

Expilab Research S.L. ( email )

Barcelona, 08034
Spain

George Gaskell

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Pietro Ortoleva

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Francesco Mureddu

Open University of Catalunya (UOC) (Open University of Catalonia) ( email )

Tibidabo Av. 39-43
08035 Barcelona, Barcelona 08035
Spain

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