Consumer Inattention in Energy-Efficient Technology Adoption : Evidence From Air Conditioner Market

The purpose of this study is to investigate behavioral inattention in the adoption of energy-efficient technology in Indonesian middle-income households. This study collects novel data (N=1182) by conducting an artefactual field experiment on respondents who have the potential to purchase household equipment, particularly air conditioners. Using information-based randomization, we assess differences in respondents' information treatment in order to analyze their limited attention. The study results show that shrouding energy-saving labels will encourage consumers to choose standard air conditioner products despite receiving information about electricity consumption and monthly operating costs. Participants' conditions improved when they were shown energy-saving label information. Providing energy labels with additional electricity consumption and monthly operating cost information promotes the willingness to pay for energy-efficient air conditioners. This study also discovered that individual heterogeneity has an important impact on preferences for energy-efficient products