Cleaner Nudges? Policy Labels and Investment Decision-making

B-Tier
Journal: The Energy Journal
Year: 2018
Volume: 39
Issue: 6
Pages: 27-52

Authors (3)

Ian Lange (not in RePEc) Mirko Moro (University of Stirling) Mohammad Mahbubur Rahman (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Recent evidence suggests that labeling of unconditional cash transfers leads recipients to spend more on the labeled good. In this paper we show that the Winter Fuel Payment, an unconditional cash transfer, has distortionary effects on the market for goods related to the labeled product, renewable technologies. Using a Regression Discontinuity Design this analysis finds a robust reduction in the probability to install renewable energy technologies of 1.2 percentage points. Falsification tests support the labeling hypothesis. As a result, households use too much energy from sources which generate pollution and too little from relatively cleaner technologies.

Technical Details

RePEc Handle
repec:sae:enejou:v:39:y:2018:i:6:p:27-52
Journal Field
Energy
Author Count
3
Added to Database
2026-01-26