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

Cristiano Codagnone, Giuseppe Alessandro Veltri, Francesco Bogliacino, Francisco Lupiáñez-Villanueva, George Gaskell, Andriy Ivchenko, Pietro Ortoleva, Francesco Mureddu

Research output: Contribution to journalArticlepeer-review

33 Scopus citations

Abstract

This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. By virtue of being embedded into a setting designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.

Original languageEnglish (US)
Pages (from-to)403-432
Number of pages30
JournalEconomia Politica
Volume33
Issue number3
DOIs
StatePublished - Dec 1 2016
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Sociology and Political Science
  • Economics and Econometrics

Keywords

  • CO emission
  • Eco-label
  • Experiments
  • Fuel economy
  • Nudge
  • Willingness to pay

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