Casting light on energy efficiency : evidence on consumer inattention and imperfect information

Matthias Rodemeier, Andreas Löschel, Roland Kube

We investigate consumer inattention and imperfect information regarding the financial benefits of energy-efficient lighting using a randomized controlled trial with 1,084 observations. Results suggest that subjects generally know about cost savings of LED bulbs - the central lighting technology of the future - but largely underestimate the magnitude of these savings. As a result, stated willingness-to-pay for an LED bulb increases on average by 2.53€ through the provision of information on expected lifetime costs. Consumers also confound technology attributes of energy-efficient alternatives, which further explains low adoption rates of the LED technology.

MoreLess

Year of publication:	January 2017
Authors:	Rodemeier, Matthias ; Löschel, Andreas ; Kube, Roland
Publisher:	[Münster] : [CAWM]
Subject:	Imperfect Information \| Inattention \| Energy Efficiency Gap \| Experimental Economics \| Energieeinsparung \| Energy conservation \| Unvollkommene Information \| Incomplete information \| Konsumentenverhalten \| Consumer behaviour \| Informationsverhalten \| Information behaviour \| Energiekonsum \| Energy consumption \| Theorie \| Theory