The impact of socioeconomic and behavioural factors for purchasing energy efficient household appliances: A case study for Denmark

Abstract

Increasing the share of evermore energy efficient household electric appliances is one strategy to address environmental impacts arising from residential electricity demand. Hence, governments and energy actors are interested in the determining factors behind the consumer choice of conventional versus high efficiency labelled appliances. This study employs empirical survey data from the Danish Energy Agency to model influential factors behind Danish consumer choice of energy efficient appliances. To estimate consumer propensities, we use a logistic regression model over a set of socioeconomic, demographic, and behavioural variables. The study regresses over this unique combination of end-use behavioural variables by creating an energy efficiency index. Statistical results show that housing type, quantity of inhabitants, age, and end-use behaviour are strong predictors for choosing energy efficient appliances. Interestingly, income is a weaker predictor. Despite a relatively wealthy national income and well-educated population, information campaigns have been largely ineffective in driving high efficiency investments. In light of this study's results and exogenous factors such as urbanising demographics and shifting Danish housing stock towards apartments, the study suggests improved information campaigns by targeting key demographics.