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Technology adoption, consumer inattention and heuristic decision-making : evidence from a UK district heating scheme
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Burlinson, Andrew, Giulietti, Monica and Battisti, Giuliana (2018) Technology adoption, consumer inattention and heuristic decision-making : evidence from a UK district heating scheme. Research Policy, 47 (10). pp. 1873-1886. doi:10.1016/j.respol.2018.06.017 ISSN 0048-7333.
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Official URL: https://doi.org/10.1016/j.respol.2018.06.017
Abstract
This paper contributes to the debate on the energy efficiency paradox according to which consumers fail to adopt cost-effective, energy efficient technologies over less efficient technologies and therefore fail to reduce energy consumption. Both traditional and behavioural theories are used to investigate the decision-making process of residential consumers with empirical evidence based upon a specially designed quasi-experimental survey of 784 households on the decision to connect to a district-heating system, a more energy efficient alternative to individual heating systems. The results suggest an internal discount rate of around 36 per cent for homeowners, a signal that consumers undervalue future energy costs. We also find the household’s decision to be negatively affected by years of payback up to around 7-8 years. Our findings suggest that neglecting consumer inattention and heuristics can lead to biases which cast doubt on the existence of the energy efficiency paradox. We believe that these results help to explain why some consumers are unlikely to invest in energy efficient technology, particularly those on low incomes.
| Item Type: | Journal Article | ||||||||||||||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||||||||||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School |
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| Library of Congress Subject Headings (LCSH): | Energy consumption, Energy industries, Public goods, Homeowners, Decision making | ||||||||||||||||||
| Journal or Publication Title: | Research Policy | ||||||||||||||||||
| Publisher: | Elsevier BV | ||||||||||||||||||
| ISSN: | 0048-7333 | ||||||||||||||||||
| Official Date: | December 2018 | ||||||||||||||||||
| Dates: |
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| Volume: | 47 | ||||||||||||||||||
| Number: | 10 | ||||||||||||||||||
| Page Range: | pp. 1873-1886 | ||||||||||||||||||
| DOI: | 10.1016/j.respol.2018.06.017 | ||||||||||||||||||
| Status: | Peer Reviewed | ||||||||||||||||||
| Publication Status: | Published | ||||||||||||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||||||||||||
| Date of first compliant deposit: | 9 July 2018 | ||||||||||||||||||
| Date of first compliant Open Access: | 31 January 2020 | ||||||||||||||||||
| RIOXX Funder/Project Grant: |
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