MONETARY INFORMATION TO INCREASE THE ADOPTION OF ENERGY-EFFICIENT OPTIONS: TRICK OR TREAT?

The document examines the 'energy efficiency gap' and evaluates whether converting energy consumption data (kWh/year) into monetary terms encourages the purchase of energy-efficient appliances. Based on field experiments and literature reviews, it finds that while monetary information can be effective, its success depends heavily on the appliance type and the method of delivery. For example, lifetime energy savings (LES) information is effective for fridges and washing machines when delivered via sales staff or labels, whereas lifetime energy cost (LEC) information is effective for A++ models of fridges, washing machines, and dishwashers when provided by sales staff. The authors suggest using QR codes on labels to address varying energy prices across EU countries.

• The 'energy efficiency gap' refers to the frequent underinvestment in energy efficiency (EE) despite its ability to reduce energy consumption across different sectors.
• Converting energy consumption data from kWh/year into monetary information may help consumers overcome informational barriers by allowing them to perceive that future energy savings can offset the initial investment in energy-efficient products.
• The effectiveness of lifetime energy savings (LES) information varies by appliance and delivery method: it works for fridges when provided by sales staff or a combination of labels and staff, and for washing machines only when provided via a monetary label. No effect was observed for dishwashers.
• Lifetime energy cost (LEC) information is effective in increasing the purchase of A++ fridges, washing machines, and dishwashers when delivered by sales staff alone or in combination with a supplementary label.
• Literature reviews indicate no clear consensus on the effectiveness of monetary information, as results can be positive, negative, or null depending on the product category and consumer idiosyncrasies.
• While LES information generally yields better results than LEC, it is more complex to implement because it requires a benchmark for maximum energy consumption that must be updated regularly.
• To address the challenge of differing energy prices across European Union countries, the authors suggest incorporating QR codes into energy efficiency labels to link consumers to lifetime energy costs based on their specific country's average electricity price.

APA

Solà, M. D. M., de Ayala, A., Galarraga, I., & Escapa, M. (2023). MONETARY INFORMATION TO INCREASE THE ADOPTION OF ENERGY-EFFICIENT OPTIONS: TRICK OR TREAT? Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20230515024739726001613.pdf

Chicago

Solà, María del Mar, Amaia de Ayala, Ibon Galarraga, and Marta Escapa. MONETARY INFORMATION TO INCREASE THE ADOPTION OF ENERGY-EFFICIENT OPTIONS: TRICK OR TREAT? Basque Centre for Climate Change, 2023. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20230515024739726001613.pdf.

Wikipedia

{{cite report |last1=Solà |first1=María del Mar |last2=de Ayala |first2=Amaia |last3=Galarraga |first3=Ibon |last4=Escapa |first4=Marta |title=MONETARY INFORMATION TO INCREASE THE ADOPTION OF ENERGY-EFFICIENT OPTIONS: TRICK OR TREAT? |publisher=Basque Centre for Climate Change |date=May 2023 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20230515024739726001613.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sol2023monetary, author = {Solà, María del Mar and de Ayala, Amaia and Galarraga, Ibon and Escapa, Marta}, title = {{MONETARY INFORMATION TO INCREASE THE ADOPTION OF ENERGY-EFFICIENT OPTIONS: TRICK OR TREAT?}}, institution = {Basque Centre for Climate Change}, year = {2023}, month = may, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20230515024739726001613.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }