Urban consumers’ willingness to pay for higher-level energy-saving appliances: Focusing on a less developed region

Abstract

Rapid urbanization poses accelerating pressure on energy and resources consumption, especially in the less developed regions. The Energy Efficiency Labeling System (EELS) reporting the energy efficiency of various household appliances has been implemented aiming at reducing household energy consumption. It has been proved useful in guiding consumers to purchase higher-level energy-saving appliances (ESAs). In this study, we attempt to explore how much urban consumers are willing to pay additionally for higher-level ESAs compared with the lower-level ones in a typical less developed region in China (Jilin Province). The Contingent Valuation Method (CVM) is adopted to measure the influencing factors of the willingness to pay (WTP). It is found that the consumers are willing to pay additionally 12.31% and 33.43% of the price of level-3 ESAs for level-2 and level-1 ESAs, respectively (there are five levels in total among which level-1 is the highest). Age, education background, environmental consciousness and other factors have different degrees of effects on the WTP, among which annual household income is the most influential one. The female with full-time housework, the young with good environmental consciousness, those with master degree or the above, and government staff with high recognition of the EELS tend to purchase the highest-level ESAs. This study is expected to provide insights for policy interventions aimed at advocating the use of higher-level ESAs and reducing household energy consumption.