Memory effect of appliance rebate programme: evidence from a lab experiment

The study employs a controlled lab experiment with 166 subjects to test the persistence of the RENOVE rebate programme's effect on fridge purchases. Findings indicate that while rebate programmes significantly increase the adoption of energy-efficient (EE) appliances, the 'memory effect' (continued EE preference after the rebate expires) is more likely among individuals with higher education levels and high environmental concern. Conversely, older participants and those in higher social classes are more likely to buy EE appliances regardless of the rebate, suggesting they are less sensitive to such financial incentives. The research also highlights that decision criteria, such as focusing on energy consumption or lifetime energy costs, significantly influence purchasing behavior.

• The lab experiment demonstrated a clear increase in the adoption of energy-efficient (EF) fridges during the active rebate period, with the percentage of subjects choosing EF fridges rising from 60.24% in Scenario 2 (no rebate) to 89.75% in Scenario 3 (with RENOVE rebate).
• A 'memory effect' was observed where the preference for energy-efficient appliances persisted after the rebate programme ended, although the percentage of subjects choosing EF fridges dropped to 66.86% in Scenario 4.
• The probability of the memory effect is positively correlated with higher education levels (Bachelor's, Master's, or PhD) and high levels of environmental concern.
• Age has a divergent impact: older participants are more likely to always purchase energy-efficient fridges but are less likely to be influenced by the RENOVE rebate programme itself.
• Social class significantly influences decision-making, with higher social class or income increasing the probability of choosing energy-efficient fridges, while lower-middle class subjects showed a higher likelihood of being affected by the memory effect.
• Decision criteria play a critical role; subjects who primarily use energy consumption as their main criterion are more likely to choose energy-efficient options and exhibit the memory effect.
• Recent experience in purchasing appliances (within the last 4 years) increases the probability of a consumer being nudged toward an efficient fridge while a rebate programme is active.
• Gender differences were observed in the purchase of non-efficient appliances, with male participants being more likely to choose inefficient options, potentially due to gaps in energy-related literacy.

APA

Solà, M. D. M., de Ayala, A., Galarraga, I., & Escapa, M. (2022). Memory effect of appliance rebate programme: evidence from a lab experiment. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20220706121506213191801.pdf

Chicago

Solà, María del Mar, Amaia de Ayala, Ibon Galarraga, and Marta Escapa. Memory effect of appliance rebate programme: evidence from a lab experiment. Basque Centre for Climate Change, 2022. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20220706121506213191801.pdf.

Wikipedia

{{cite report |last1=Solà |first1=María del Mar |last2=de Ayala |first2=Amaia |last3=Galarraga |first3=Ibon |last4=Escapa |first4=Marta |title=Memory effect of appliance rebate programme: evidence from a lab experiment |publisher=Basque Centre for Climate Change |date=June 2022 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20220706121506213191801.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sol2022memory, author = {Solà, María del Mar and de Ayala, Amaia and Galarraga, Ibon and Escapa, Marta}, title = {{Memory effect of appliance rebate programme: evidence from a lab experiment}}, institution = {Basque Centre for Climate Change}, year = {2022}, month = jun, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20220706121506213191801.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }