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Enhancing the informational nudge of energy labels: evidence from a DCE in New Delhi

Grover, Charu and Bansal, Sangeeta and Martinez Cruz, Adan (2021). Enhancing the informational nudge of energy labels: evidence from a DCE in New Delhi. (S) > Dept. of Forest Economics, Sveriges lantbruksuniversitet. CERE Working Paper ; 2021:4

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India’s contribution to global CO2 emissions makes it a priority case for policy makers worldwide. The Indian government is considering the adoption of energy labels for new passenger cars to tackle CO2 emissions. This paper’s first aim is to asses New Delhi’s car buyers’ preferences for cars displaying energy labels. To do so, a discrete choice experiment (DCE) has been designed to document both WTP for energy efficiency (212 USD for one kilometer per liter) and WTP for the best efficiency label (4.93 thousand USD). The informational nudge embedded in a labeling system may not be enough to boost uptake of efficient cars. Thus this paper investigates the potential of combining a labeling system and car driving restrictions. Via a split-sample approach, this paper documents an increase of 2.55 thousand USD in stated WTP for the best efficiency label. This number can be interpreted as reflecting the costs imposed by the driving restrictions on car drivers. Under this interpretation, 2.55 thousand USD fall within the range of estimations reported in previous studies. The results in this paper suggest that a combination of driving restrictions and a labeling system may deliver an increase in energy efficient cars in New Delhi.

Authors/Creators:Grover, Charu and Bansal, Sangeeta and Martinez Cruz, Adan
Title:Enhancing the informational nudge of energy labels: evidence from a DCE in New Delhi
Series Name/Journal:CERE Working Paper
Year of publishing :2021
Number of Pages:27
Publisher:Centre for Environmental and Resource Economics
Publication Type:Report
Article category:Other scientific
Version:Published version
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 2 Engineering and Technology > 207 Environmental Engineering > Energy Systems
Keywords:energy labeling system, driving restrictions, willingness to pay, discrete choice experiment, split-sample approach, New Delhi
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Alternative URL:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3795176
ID Code:23286
Faculty:S - Faculty of Forest Sciences
Department:(S) > Dept. of Forest Economics
Deposited By: SLUpub Connector
Deposited On:16 Apr 2021 14:03
Metadata Last Modified:21 Apr 2021 13:09

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