Abstract
Consumers tend to pay less attention to the hidden long-term energy costs than the more noticeable upfront purchase prices. Regarding this condition, this study will estimate the acceptable additional price for an energy-efficient inverter AC by applying the Contingent Valuation Method (CVM). The study gathers primary data by delivering the questionnaire with the payment card inside to the 328 Semarang City participants as the research sample. Nevertheless, nine respondents indicated their reluctance to buy at an extra price. Hence, this study modified the number of samples to 319 respondents. Based on the data processing, this study found that individual characteristics are critical in determining willingness to purchase energy-efficient inverters AC. The monthly income level factor seems to positively influence the willingness to pay a premium price for an energy-efficient inverter AC. This study also indicated that consumers with higher education levels, especially those familiar with energy-saving concepts, positively impact their willingness to pay a premium price for energy-efficient inverters AC.
Published Version
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