Reducing e-waste in Europe: Examining the impact of environmental and financial literacy on the premature replacement of appliances across owner-occupier and rental residential properties using the EVIDENT serious game

Abstract

AimAs premature replacement of residential appliances drives rising e-waste levels in Europe, analysis of the factors impacting consumer decision-making when faced with opportunities to extend (repair) or reduce appliance lifespans (premature replacement) is needed. This manuscript seeks to explore the impact of environmental and financial literacy on consumer willingness to seek repair of home appliances (over replacement) across owner-occupier and rental properties. The impact of financial salience within the informational frames of these decisions is also explored. MethodAn online discrete choice experiment was conducted using the EVIDENT serious game, a life-simulation game in which players manage a virtual home and face energy decisions. Participants (n = 1056) completed a series of 3 choice experiments exploring repair/replace decision-making and willingness to pay for repair. Prior to the game, measures of environmental literacy, financial literacy, household type, and sociodemographic factors were obtained using a pre-game survey. For rental properties, a further stated preference experiment was conducted to determine the impact of financial incentives on willingness to invest in more efficient appliances for both landlords and tenants. ResultsWhile an overall willingness to seek repair for broken home appliances was found, most participants selected to prematurely replace their broken appliance with a more efficient alternative. Participants aged over 51 were significantly less likely to choose a repair (p < .001), while those in non-full-time employment more likely to select a repair (p < .001). Limited impact of environmental and financial literacy on repair/replace decision-making was found, though financial knowledge, environmental knowledge, and environmental skills were associated with willingness to pay for repair. Willingness towards repair in rental properties (landlords and tenants) was found with tenants willing to pay 34–71.3 % more than homeowners for repair and landlords willing to pay 93.3–108.8 % more depending on the appliance. Mixed impacts of financial incentives in rental properties to surmount impacts of split incentives were found. While 86.6 % of landlords were willing to accept a small fee from tenants towards a more efficient appliances, 65.2 % of tenants were unwilling to pay such a fee. ConclusionResults cast light on the specific impacts of individual financial and environmental literacy, demographic factors, and residence type on early replacement decisions, providing valuable direction for future policy actions.