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Is there an energy efficiency gap in China? Evidence from an information experiment

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  • Beattie, Graham
  • Ding, Iza
  • La Nauze, Andrea
Abstract
We use an incentivized field experiment to test whether Chinese consumers underinvest in energy efficiency. We document that providing information to Chinese consumers on the energy costs of lightbulbs significantly increases their willingness to pay for energy-efficient bulbs, even among those who previously overestimated the savings from energy efficiency. Our results indicate that Chinese consumers are imperfectly informed, but that neither biased beliefs nor salience can explain their underinvestment in energy efficiency. Rather, we contend that consumers underinvest in energy efficiency because they are uncertain about the savings from energy efficient products.

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  • Beattie, Graham & Ding, Iza & La Nauze, Andrea, 2022. "Is there an energy efficiency gap in China? Evidence from an information experiment," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:jeeman:v:115:y:2022:i:c:s0095069622000730
    DOI: 10.1016/j.jeem.2022.102713
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    Cited by:

    1. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    2. Xianpu Xu & Lingyun Huang, 2024. "How Does Environmental Protection Tax Affect Urban Energy Consumption in China? New Insights from the Intensity Difference-in-Differences Model," Sustainability, MDPI, vol. 16(10), pages 1-26, May.
    3. Lin, Boqiang & Jia, Huanyu, 2024. "Present-biased individuals and their underinvestment in household energy efficiency: Evidence from first-tier Chinese cities," Energy Policy, Elsevier, vol. 185(C).
    4. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    5. Dong, Kangyin & Ni, Guohua & Taghizadeh-Hesary, Farhad & Zhao, Congyu, 2023. "Does smart transportation matter in inhibiting carbon inequality?," Energy Economics, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Energy consumption; Energy efficiency; Incentivized choice experiment; Energy efficiency gap; Behavioral economics; China;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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