Socioeconomic Determinants of Awareness of Energy Labels and Their Influence on Purchase Decisions in the EU

Abstract

This paper examines the determinants of individuals’ awareness of EU Energy Labels and the extent to which these labels influence their purchase decisions for electricappliances. The analysis is based on Eurobarometer survey data from 27,438 individuals across 28 EU Member States in 2019. Specifically, we explore the role ofsocioeconomic characteristics such as age, gender, education, financial stability, and political engagement. Our findings indicate that individual characteristics have astronger effect on the influence of labels on purchase decisions than on label awareness. However, significant heterogeneity across countries persists, even after controllingfor individual characteristics. Using our model, we perform three exercises in which we assume a policymaker can either increase label awareness among allunaware individuals or target specific demographic groups. We demonstrate the resulting impact on the share of individuals whose purchase decisions are influencedby the labels. The results reveal that, even when label awareness is at its highest level, it does not necessarily lead to substantially greater influence on purchasingdecisions in certain countries.

Keywords: European Green Deal, Ecodesign Directive, Energy-efficiency