This paper investigates the effect of using labelled versus generic unlabelled alternatives in choice experiments (CEs) in the case of a multidimensional environmental good (power generation) that is often associated with strong prior beliefs and emotions. Specifically, it assesses the effect of naming selected low-carbon energy technologies on the underlying choices, the implicit prices for the technology attributes and the total economic values attached to their environmental benefits. Our findings are only mildly suggestive of a labelling effect where respondents employ different processing strategies when confronted with labels, focusing principally on the label and/or considering attributes differently. In the case of power generation, the use of labelled alternatives led to significantly different estimated attribute parameters; in contrast, most implicit prices remained undistinguishable and computed welfare measures were found to be statistically equivalent.
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Original Articles
Assessing the effect of energy technology labels on preferences
Eleni Fimereli Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science , WC2A 2AZ, London , Houghton Street , UK & Susana Mourato Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science , WC2A 2AZ, London , Houghton Street , UK ; Department of Geography and Environment, London School of Economics and Political Science , WC2A 2AE, London , Houghton Street , UK
Pages 245-265
Received 07 Jun 2012
Accepted 15 Apr 2013
Published online: 24 May 2013
Original Articles
Assessing the effect of energy technology labels on preferences
Eleni Fimereli Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science , WC2A 2AZ, London , Houghton Street , UK & Susana Mourato Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science , WC2A 2AZ, London , Houghton Street , UK ; Department of Geography and Environment, London School of Economics and Political Science , WC2A 2AE, London , Houghton Street , UK