Labels as nudges? An experimental study of car eco-labels

Codagnone, Cristiano, Veltri, Giuseppe Alessandro, Bogliacino, Francesco, Lupiáñez-Villanueva, Francisco, Gaskell, George, Ivchenko, Andriy, Ortoleva, Pietro and Mureddu, Francesco (2016) Labels as nudges? An experimental study of car eco-labels. Economia Politica, 33 (3). pp. 403-432. ISSN 1120-2890

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Abstract

This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. By virtue of being embedded into a setting designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.

Item Type:	Article
Official URL:	http://link.springer.com/journal/40888
Additional Information:	© 2016 The Authors © CC BY 4.0
Divisions:	Centre for Analysis of Risk & Regulation
Subjects:	H Social Sciences > HF Commerce
JEL classification:	C - Mathematical and Quantitative Methods > C9 - Design of Experiments D - Microeconomics > D3 - Distribution Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
Date Deposited:	20 Dec 2016 14:06
Last Modified:	17 Oct 2024 18:27
Projects:	EAHC/2011/CP/01/LSE
Funders:	071201/2012/625659/CLIMA.C.2
URI:	http://eprints.lse.ac.uk/id/eprint/68683

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