Effectiveness of Provision of Energy-Saving Performance Information in Selection of Air Conditioners: Evidence from an Online Randomized Controlled Trial

Author Name HIRAI Yusuke (METI) / KOBAYASHI Yohei (Consulting Fellow, RIETI) / YOKOO Hidefumi (Research Associate, RIETI) / TAKAHASHI Kei (Mitsubishi UFJ Research & Consulting) / TAKEDA Masahiro (Mitsubishi UFJ Research & Consulting) / YOSHIKAWA Yasuhiro (Agency for Natural Resources and Energy)
Creation Date/NO. March 2019 19-J-021
Research Project Promoting Evidence-based Policy in Japan
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The "Label Display Program for Retailers" under the revised Act on the Rational Use of Energy, which was introduced in 2006, obligates retailers to make efforts to display information on energy saving performance so that consumers can recognize and compare the performance of products. In this paper, we examine which types of energy saving information increase the probability of selecting energy-saving air conditioners by utilizing an online randomized controlled trial. Our empirical results indicate that the selection probability of energy-saving products increases when multistage ratings and expected annual electricity bill information are displayed. On the other hand, our results also reveal that information on achievement rate in terms of energy-saving standards does not significantly increase the selection probability of energy-saving products.