Abstract
The significant role of energy efficiency labelling should not be ignored as it provides various information that serve as a guideline when people make purchasing decision. It indicates projection energy consumption of an electrical equipment according to energy efficiency rating system. This study applied choice experiment (CE) method in which the conditional logit (CL) model was valued to determine students' willingness to pay (WTP) based on their preferences of the energy label attributes of table fans. A questionnaire survey was distributed to 151 on-campus students in Terengganu, Malaysia. The attributes were speed of fan, energy consumption and energy star and price of fan. The study found that the students mostly preferred energy consumption attribute with WTP estimation of RM123.538 (USD29.66) at level two and RM42.88 (USD10.30) at level three. These findings illustrate how people place value on monetary and non-monetary attributes based on their preferences. A label with energy-efficient standard makes it easier for utility companies and government energy-conservation organizations to offer consumers incentives to purchase energy-efficient products. The usefulness of energy efficiency label is very reliant in terms of how it portrays information to the people and promote energy conservation.Keywords: Choice Experiment, energy label, energy efficiency, energy conservation, table fan Willingness to Pay.JEL Classifications: D1, Q0, Q4, Q5DOI: https://doi.org/10.32479/ijeep.10824
Highlights
In the context of economic growth, the Global Energy Statistical Yearbook (2020) reported the global electricity consumption has increased by 0.7% in 2019 compared to an average of 3% per year between the year 2000 and 2018
The willingness to pay (WTP) for EE label attributes which includes the price of table fan, speed of fan, energy consumption and level of energy star were examined using survey data from students resided in Universiti Malaysia Terengganu (UMT) hostel
This study estimated the marginal value of attributes off the labels on the table fan appliance
Summary
In the context of economic growth, the Global Energy Statistical Yearbook (2020) reported the global electricity consumption has increased by 0.7% in 2019 compared to an average of 3% per year between the year 2000 and 2018. China was ranked first, accounting for 28% of the global electricity consumption which grew by 4.5% in 2019 compared to 10% annual increment due to the slowdown in electricity demand from industry. Malaysia, a developing country, consumes energy at 155 TWh. Several studies have shown a positive relationship between electricity consumption and economic growth. Rapid economic development means higher electricity consumption which boosts the industrial economy. In order to develop the economy and at the same time reduce energy consumption, it is necessary to reveal the relationship between electricity consumption and economic growth. There is a certain consistency between electricity consumption and economic growth domestically
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
