Is There an Energy Efficiency Gap in China? Evidence from an Information Experiment

19 Pages Posted: 2 Dec 2021

See all articles by Graham Beattie

Graham Beattie

Loyola Marymount University

Iza Ding

University of Pittsburgh

Andrea La Nauze

University of Queensland

Date Written: 2021

Abstract

We provide evidence of an energy efficiency gap in China. Using an incentivized field experiment, we document that providing information to consumers on the energy costs of lightbulbs significantly affects their willingness to pay for energy efficient bulbs. Unlike previous literature, we do not find evidence that this gap is driven by biased beliefs. Further our experimental design allows us to rule out that changes in willingness to pay are driven purely by the salience of the monetary or environmental costs of lightbulbs. We argue that the results are consistent with consumers being risk averse and uncertain about the benefits of more energy efficient appliances.

Keywords: energy-efficiency, lightbulbs, information experiment

JEL Classification: Q400, H230

Suggested Citation

Beattie, Graham and Ding, Iza and La Nauze, Andrea, Is There an Energy Efficiency Gap in China? Evidence from an Information Experiment (2021). CESifo Working Paper No. 9435, Available at SSRN: https://ssrn.com/abstract=3975111 or http://dx.doi.org/10.2139/ssrn.3975111

Graham Beattie (Contact Author)

Loyola Marymount University ( email )

7900 Loyola Boulevard
Los Angeles, CA 90045
United States

Iza Ding

University of Pittsburgh ( email )

135 N Bellefield Ave
Pittsburgh, PA 15260
United States

Andrea La Nauze

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

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