Cognitive Reflection and the Valuation of Energy Efficiency
Based on a stated-choice experiment among about 3,600 German households heads on the purchase of electricity-using durables, this paper explores how cognitive reflection influences consumers’ valuation of energy efficiency and investigates the interaction with consumers’ response to the EU energy label. Our results indicate that consumers with low cognitive abilities value energy efficiency less. Furthermore, we demonstrate that consumers with a low level of cognitive reflection primarily choose appliances based on grade-like energy efficiency classes, rather than detailed information on annual energy use.