Efficient energy labelling: the impact of information content and style on product choice

It is widely acknowledged that energy labels guide consumers towards more energy-saving appliances. However, the effectiveness of energy labelling schemes should not be taken for granted; the quality and the amount of information, as well as the way that information is displayed on energy labels may affect consumers’ choices. The paper presents the results of a choice-based experiment conducted in Greece on a random sample of 992 individuals. The respondents were assigned to one of four experimental conditions: (i) a labelled experiment without additional information on the estimated cost of energy (Control sample); (ii) a labelled experiment with additional information on the estimated cost of energy (Treatment 1); (iii) a non-labelled experiment without additional information on the estimated cost of energy (Treatment 2); and (iv) a non-labelled experiment with additional information on the estimated cost of energy (Treatment 3). The results indicate that including annual operating cost estimates in the refrigerator energy labels do not affect the consumers’ choices due to the relatively low annual operating cost of the refrigerator. Thus, from a policy perspective, energy saving campaigns should better focus on other social benefits deriving from reductions in energy use.