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Consumer Behavior and Ecolabeling

  • Ahmad GhozaliEmail author
  • Shinji Kaneko
Chapter

Abstract

Rapid development of voluntary and mandatory ecolabeling has occurred since the government enacted national standardization in 2000, including mandatory energy-saving labeling schemes (public labels) for compact fluorescent lamps (CFL) and air conditioning (AC). Some top AC producers attached their own energy-saving label (private label) to attract green consumers. Energy efficiency programs challenge certain barriers to its implementation, e.g., phasing out energy subsidies and encouraging consumers to utilize energy efficiently. To understand how consumers react to the energy efficiency labeling applied to AC products, this chapter reviews some policies carried out and some barriers faced by the government on the ecolabels and energy conservation through energy efficiency labeling scheme and presents a case study of consumers and preferences toward AC products conducted in Greater Jakarta. The study revealed that the main decision-makers regarding electronic household appliances are mainly adult males with advanced education and high income who live in a house without split AC installed but have the intention to purchase it. Brand of origin, guarantee, and public and private labels have positive impacts on consumer preferences in buying AC products. Implementation of a public label can improve the marginal utility of potential consumers living in either high-penetration AC markets or low-penetration AC markets who have a high intent to buy. Both public and private labels have good synergy, which improves consumer preferences in buying split AC when the labels are implemented together with an energy subsidy removal policy. On average, willingness to pay for AC products with public and private labels is approximately 378 USD and 163 USD, respectively. Both labels in the market can generate a potential total social economic value of approximately 635 million USD and 274 million USD, respectively. Subsidy removal will increase the values by 36 % and 81 %, respectively.

Keywords

Energy conservation Energy efficiency Ecolabeling Air conditioner Willingness to pay Economic valuation Greater Jakarta Indonesia 

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Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.Graduate School for International Development and Cooperation (IDEC)Hiroshima UniversityHigashi-HiroshimaJapan

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