Labels as nudges? An experimental study of car eco-labels

Achtnicht, M. (2012). German car buyers’ willingness to pay to reduce CO2 emissions. Climatic Change, 113(3–4), 679–697. doi:10.1007/s10584-011-0362-8. Allcott, H. (2011). Social norms and energy conservation. Journal of Public Economics, 95(9), 1082–1095. doi:10.1016/j.jpubeco.2011.03.003. Allcott, H., & Mullainathan, S. (2010). Behavior and energy policy. Science (New York, N.Y.), 327(5970), 1204. doi:10.1126/science.1180775. Allcott, H., & Rogers, T. (2014). The Short-run and long-run effects of behavioral interventions: experimental evidence from energy conservation †. American Economic Review, 104(10), 3003–3037. doi:10.1257/aer.104.10.3003. Anable, J. (2006). Review of public attitudes to climate change and transport: summary report. London: Report commissioned by the UK Department of Transport. Anable, J., Lane, B., & Banks, N. (2009). The MPG paradox. Why car purchasers say they care about fuel economy, but don’t. Paper presented at the Panels of the ECEEE 2009 Summer Study, http://www.eceee.org/conference_proceedings/eceee/2009/Panel_6/6.207/presentation. Anderson, C., & Claxton, J. (1982). Barriers to consumer choice of energy efficient products. Journal of Consumer Research, 9(2), 163–170. Bamberg, S. (2003). How does environmental concern influence specific environmentally related behaviors? A new answer to an old question. Journal of Environmental Psychology, 23(1), 21–32. Berger, I., & Corbin, R. (1992). Perceived consumer effectiveness and faith-in-others as moderators of environmentally responsible behaviors. Journal of Public Policy and Marketing, 11(2), 79–90. Bernedo, M., Ferraro, P., & Price, M. (2014). The persistent impacts of norm-based messaging and their implications for water conservation. Journal of Consumer Policy, 37(3), 437–452. doi:10.1007/s10603-014-9266-0. Bicchieri, C., & Xiao, E. (2007). Do the right thing: but only if others do so. Journal of Behavioral Decision Making, 22, 191–208. Blend, J. R., & Van Ravenswaay, E. O. (1999). Measuring consumer demand for ecolabeled apples. American Journal of Agricultural Economics, 81(5), 1072–1077. Bogliacino, F., Codagnone, C., Veltri, G. A., Chakravarti, A., Ortoleva, P., Gaskell, G., et al. (2015). Pathos & Ethos: emotions and willingness to pay for tobacco products. PLoS ONE, 10(10), e0139542. doi:10.1371/journal.pone.0139542. Bougherara, D., Grolleau, G., & Thiebaut, L. (2005). Can labelling policies do more harm than good? An analysis applied to environmental labelling schemes. European Journal of Law and Economics, 19(1), 5–16. Branningan, C., Skinner, I., Gibson, G., & Kay, D. (2011). Report on the implementation of the Directive 1999/94/EC relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passengers car. Brussels: Report prepared by ADAE for the European Commission, DG Climate Action. http://ec.europa.eu/clima/policies/transport/vehicles/labelling/docs/final_report_2012_en.pdf. Camerer, C., & Hogarth, R. (1999). The effects of financial incentives in experiments: a review and capital-labor-production framework. Journal of Risk and Uncertainty, 19(1–3), 7–42. doi:10.1023/A:1007850605129. Carlsson, F., & Johansson-Stenman, O. (2012). Behavioral economics and environmental policy. Annual Review of Resource Economics, 4, 75–99. Choo, S., & Mokhtarian, P. (2004). What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice. Transportation Research Part A, 38(3), 201–222. Clark, C. F., Kotchen, M. J., & Moore, M. R. (2003). Internal and external influences on pro-environmental behavior: participation in a green electricity program. Journal of Environmental Psychology, 23(3), 237–246. Codagnone, C., Bogliacino, F., & Veltri, G. (2013). Testing CO2/Car labelling options and consumer information. Final Report. Brussels: European Commission (http://ec.europa.eu/clima/policies/transport/vehicles/labelling/docs/report_car_labelling_en.pdf). Codagnone, C., Bogliacino, F., Veltri, G., Lupiáñez-Villanueva, F., et al. (2014a). Nudging in the World of International Policy Making. In A. Samson (Ed.), The Behavioral Economics Guide 2014, Edition: 1st Edition (pp. 51–58): http://www.behavioraleconomics.com/. Codagnone, C., Veltri, G., Lupiáñez-Villanueva, F., & Bogliacino, F. (2014b). The challenges and opportunities of ‘nudging’. Journal of Epidemiology and Community Health, 68(10), 909. Croson, R., & Treich, N. (2014). Behavioral environmental economics: promises and challenges. Environmental & Resource Economics, 58(3), 335–351. doi:10.1007/s10640-014-9783-y. de Boer, J. (2003). Sustainability labelling schemes: the logic of their claims and their functions for stakeholders. Business Strategy and the Environment, 12(4), 254–264. doi:10.1002/bse.362. Delmas, M. A., & Grant, L. E. (2014). Eco-labeling strategies and price-premium: the wine industry puzzle. Business and Society, 53(1), 6–44. doi:10.1177/0007650310362254. Dyer, R., & Maronick, T. (1988). An evaluation of consumer awareness and use of energy labels in the purchase of major appliances: a longitudinal analysis. Journal of Public Policy & Marketing, 7(Special Issue on the FTC), 83–97. EC. (1992). Council directive 92/75/EEC Brussels: European Commission. Official Journal of the European Communities, L297, 16–19. EC. (1999). Directive 1999/94/EC. Brussels: European Commission. Official Journal of the European Communities, L12, 16–23. EC. (2009). Regulation (EC) No 443/2009. Brussels: European Commission. Official Journal of the European Union., L140, 1–15. EC. (2010). Directive 2010/30/EC Brussels: European Commission. Official Journal of the European Union, L153, 1–12. EC. (2014). Regulation (EU) No 333/2014 Brussels: European Commission. Official Journal of the European Union., L103, 15–21. EC. (2015). EU transport in figures–statistical pocketbook 2015. Luxembourg: Publications Office of the European Union. EC. (2016). 2030 Climate & energy framework (last updated 11/02/2016). Brussels: European Commission. http://ec.europa.eu/clima/policies/strategies/2030/index_en.htm Accessed 19 Feb 2016. EPA, & DOT. (2011a). 2017 and later model year light-duty vehicle greenhouse gas emissions and corporate average fuel economy standards: environmental Protection Agency and Department of Transportation. Federal Register, 76, 74854. EPA, & DOT. (2011b). Greenhouse gas emissions standards and fuel efficiency standards for medium- and heavy-duty engines and vehicles: Environmental Protection Agency and Department of Transportation. Federal Register, 76(57106), 57347. Fasolo, B., Reutskaja, E., Dixon, A., & Boyce, T. (2010). Helping patients choose: how to improve the design of comparative scorecards of hospital quality. Patient Education and Counseling, 78(3), 344–349. doi:10.1016/j.pec.2010.01.009. Gadenne, D., Sharma, B., Kerr, D., & Smith, T. (2011). The influence of consumers’ environmental beliefs and attitudes on energy saving behaviours. Energy Policy, 39(12), 7684–7694. doi:10.1016/j.enpol.2011.09.002. Galarraga, I. (2002). The use of eco-labels: a review of the literature. European Environment, 12(6), 316–331. doi:10.1002/eet.304. Galarraga, I., Ramos, A., Lucas, J., & Labandeira, X. (2014). The price of energy efficiency in the Spanish car market. Transport Policy, 36, 272–282. doi:10.1016/j.tranpol.2014.09.003. Gayer, T., & Viscusi, W. (2013). Overriding consumer preferences with energy regulations. Journal of Regulatory Economics, 43(3), 248–264. doi:10.1007/s11149-013-9210-2. Graffeo, M., Ritov, I., Bonini, N., & Hadjichristidis, C. (2015). To make people save energy tell them what others do but also who they are: a preliminary study. Frontiers in psychology, 6, 1287. doi:10.3389/fpsyg.2015.01287. Harrington, L. (2004). Energy Labelling and Standards Programs Throughout the World: Energy Efficient Strategies, NAEEEC Report 2004/04. Heinzle, S. L., & Wüstenhagen, R. (2012). Dynamic adjustment of eco-labeling schemes and consumer choice—the revision of the EU energy label as a missed opportunity? Business Strategy and the Environment, 21(1), 60–70. doi:10.1002/bse.722. Hilton, D., Charalambides, L., Demarque, C., Waroquier, L., et al. (2014). A tax can nudge: the impact of an environmentally motivated bonus/malus fiscal system on transport preferences. Journal of Economic Psychology, 42, 17–27. doi:10.1016/j.joep.2014.02.007. Horne, R. E. (2009). Limits to labels: the role of eco-labels in the assessment of product sustainability and routes to sustainable consumption. International Journal of Consumer Studies, 33(2), 175–182. doi:10.1111/j.1470-6431.2009.00752.x. Johnson, E., Shu, S., Dellaert, B., Fox, C., et al. (2012). Beyond nudges: tools of a choice architecture. Marketing Letters, 23(2), 487–504. doi:10.1007/s11002-012-9186-1. Kaenzig, J., Heinzle, S., & Wüstenhagen, R. (2013). Whatever the customer wants, the customer gets? Exploring the gap between consumer preferences and default electricity products in Germany. Energy Policy, 53, 311. Kahneman, D., & Tversky, A. (1979). Prospect theory: an analysis of decision under risk. Econometrica, 47(2), 263–291. Kallbekken, S., Sælen, H., & Hermansen, E. (2013). Bridging the energy efficiency gap: a field experiment on lifetime energy costs and household appliances. Journal of Consumer Policy, 36(1), 1–16. doi:10.1007/s10603-012-9211-z. Kollmuss, A., & Agyeman, J. (2002). Mind the Gap: why do people act environmentally and what are the barriers to pro-environmental behavior? Environmental Education Research, 8(3), 239–260. doi:10.1080/13504620220145401. Kosters, M., & Van der Heijden, J. (2015). From mechanism to virtue: evaluating Nudge theory. Evaluation, 21(3), 276–291. Kurani, K., & Turrentine, T. (2002). Marketing clean and efficient vehicles: a review of social marketing and social science approaches. Davis: Institute of Transportation Studies, University of California; UCD-ITS-RR-02e01. Lane, B., Banks, N., & Anable, J. (2012). LowCVP Car Buyer Survey: Testing alternative fuel economy labels. London: Low Carbon Vehicle Partnership. Lane, B., & Potter, S. (2007). The adoption of cleaner vehicles in the UK: exploring the consumer attitude/action gap. Journal of Cleaner Production, 15(11), 1085–1092. doi:10.1016/j.jclepro.2006.05.026. Larrick, R. P., & Soll, J. B. (2008). The MPG Illusion. Science, 320(5883), 1593–1594. Lavrijssen, S. A. C. M. (2014). The Different Faces of Energy Consumers: toward a Behavioural Economics Approach. Journal of Competition Law and Economics, 10(2), 257–291. doi:10.1093/joclec/nht046. Loureiro, M. L., McCluskey, J. J., & Mittelhammer, R. C. (2001). Assessing consumer preferences for organic, eco-labeled, and regular apples. Journal of Agricultural and Resource Economics, 26(2), 404–416. McNeill, D., & Wilkie, W. (1979). Public policy and consumer information: impact of the new energy labels. Journal of Consumer Research, 6(1), 1–11. Momsen, K., & Stoerk, T. (2014). From intention to action: can nudges help consumers to choose renewable energy? Energy Policy, 74, 376–382. doi:10.1016/j.enpol.2014.07.008. Moon, W., Florkowski, W. J., Br√ºckner, B., & Schonhof, I. (2002). Willingness to pay for environmental practices: implications for eco-labeling. Land Economics, 78(1), 88–102. Noblet, C. L., Teisl, M. F., & Rubin, J. (2006). Factors affecting consumer assessment of eco-labeled vehicles. Transportation Research Part D: Transport and Environment, 11(6), 422–431. doi:10.1016/j.trd.2006.08.002. Ölander, F., & Thøgersen, J. (2014). Informing versus nudging in environmental policy. Journal of Consumer Policy, 37(3), 341–356. doi:10.1007/s10603-014-9256-2. Pedersen, E. R., & Neergaard, P. (2006). Caveat emptor—let the buyer beware! environmental labelling and the limitations of ‘green’ consumerism. Business Strategy and the Environment, 15(1), 15–29. doi:10.1002/bse.434. Peters, E., Dieckmann, N., Västfjäll, D., Mertz, C., et al. (2009). Bringing meaning to numbers: the impact of evaluative categories on decisions. Journal of Experimental Psychology: Applied, 15(3), 213–227. Peters, E., Hibbard, J., Slovic, P., & Dieckmann, N. (2007). Numeracy skill and the communication, comprehension, and use of risk-benefit information. Health Affairs (Project Hope), 26(3), 741. Rebonato, R. (2014). A critical assessment of libertarian paternalism. Journal of Consumer Policy, 37(3), 357–396. doi:10.1007/s10603-014-9265-1. Rubik, F., Frankl, P., Pietroni, L., & Scheer, D. (2007). Eco-labelling and consumers: towards a re-focus and integrated approaches. International Journal of Innovation and Sustainable Development, 2(2), 175–191. Sahoo, A., & Sawe, N. (2015). The Heterogeneous Effects of Eco-labels on Internalities and Externalities Steyer-Taylor Center for Energy Policy and Finance. (http://law.stanford.edu/wp-content/uploads/sites/default/files/publication/895994/doc/slspublic/HeterogeneousEffectsMS.pdf) Schultz, P. W., Nolan, J., Cialdini, R., Goldstein, N., & Griskevicius, V. (2007). The constructive, destructive, and reconstructive power of social norms. Psychological Science, 18, 429–434. Song, H., & Schwarz, N. (2008). If It’s hard to read. It’s hard to do. Psychological Science, 19(10), 986. Sousa Lourenço, J., Ciriolo, E., Almeida, S., & Troussard, X. (2016). Behavioural Insights Applied to Policy. JRC Science for Policy Report: European Union Sunstein, C. (2013). Simpler: the future of government. New York: Simon & Schuster. Sunstein, C. (2015). Nudges, agency, and abstraction: a reply to critics. Review of Philosophy and Psychology, 6(3), 511–529. doi:10.1007/s13164-015-0266-z. Sunstein, C. R., & Reisch, L. A. (2013). Green by default. Kyklos, 66(3), 398–402. doi:10.1111/kykl.12028. Sunstein, C., Reisch, L., & Rev, H. E. L. (2014). Automatically green: behavioral economics and environmental protection. Harvard Environmental Law Review, 38(1), 127–158. Teisl, M. F. (2003). What we may have is a failure to communicate*: labeling environmentally certified forest products. Forest Science, 49(5), 668–680. Teisl, M., & Roe, B. (2005). Evaluating the factors that impact the effectiveness of eco-labeling programs. In S. Krarup & C. Russell (Eds.), Environment information and consumer behavior (pp. 65–90). Cheltenham: Edward Elgar. Teisl, M. F., Rubin, J., & Noblet, C. L. (2008). Non-dirty dancing? Interactions between eco-labels and consumers. Journal of Economic Psychology, 29(2), 140–159. doi:10.1016/j.joep.2007.04.002. Teisl, M., White-Cyr, A., Noblet, C., & Rubin, J. (2005). Mainers’ knowledge, practices and attitudes toward clean air, vehicle emissions and Maine’s Clean Car Program: Department of Resource Economics and Policy Staff Paper No. 551, University of Maine. Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199–214. Thaler, R. (2004). Mental accounting matters. Princeton: Princeton University Press. Thaler, R. H., & Sunstein, C. R. (2003). Libertarian paternalism. American Economic Review, 93(2), 175–179. Thaler, R., & Sunstein, C. (2009). Nudge (revised ed.). London: Penguin. Thøgersen, J. (2000). Psychological determinants of paying attention to eco-labels in purchase decisions: model development and multinational validation. Journal of Consumer Policy, 23(3), 285–313. Thøgersen, J. (2002). Promoting green consumer behavior with eco-labels. In T. Dietz & P. Stern (Eds.), New tools for environmental protection: education information and voluntary measures (pp. 83–104). Washington, DC: National Academy Press. Thøgersen, J. (2005). How may consumer policy empower consumers for sustainable lifestyles? Journal of Consumer Policy, 28(2), 143–177. doi:10.1007/s10603-005-2982-8. Thøgersen, J., Jørgensen, A. K., & Sandager, S. (2012). Consumer decision making regarding a “green” everyday product. Psychology and Marketing, 29(4), 187–197. doi:10.1002/mar.20514. Thøgersen, J., & Noblet, C. (2012). Does green consumerism increase the acceptance of wind power? Energy Policy, 51, 854–862. doi:10.1016/j.enpol.2012.09.044. Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: a reference-dependent model. Quarterly Journal of Economics, 106, 1039–1061. van Bavel, R., Herrmann, B., Esposito, G., & Proestakis, A. (2013). Applying Behavioural Sciences to EU Policy-making. JRC Scientific and Policy Reports. Luxembourg: Publications Office of the European Union. van Bavel, R., Rodriguez-Priego, N., & Maghiros, I. (2015). Seven points to remember when conducting behavioural studies in support of EU Policy-making. JRC Scientific and Policy Reports. Luxembourg: Publications Office of the European Union. Vlaeminck, P., Jiang, T., & Vranken, L. (2014). Food labeling and eco-friendly consumption: experimental evidence from a Belgian supermarket. Ecological Economics, 108, 180–190. doi:10.1016/j.ecolecon.2014.10.019. Weber, E. (2013). Doing the right thing willingly: using the insights of behavioral decision research for better environmental decisions. In E. Shafir (Ed.), The Behavioural Foundations of Public Policy (pp. 380–464). Princeton, NJ: Princeton University Press.