Arbeitspapier
Information Nudges, Subsidies, and Crowding Out of Attention: Field Evidence from Energy Efficiency Investments
How can information substitute or complement financial incentives such as Pigouvian subsidies? We answer this question in a large-scale field experiment that cross-randomizes energy efficiency subsidies with information about the financial savings of LED lighting. Information has two effects: It shifts and rotates demand curves. The direction of the shift is ambiguous and highly dependent on the information design. Informing consumers that an LED saves 90% in annual energy costs increases LED demand, but showing them that 90% corresponds to an average of 11 euros raises demand for less efficient technologies. The rotation of the demand curve is unambiguous: information dramatically reduces both own-price and cross-price elasticities, which makes subsidies less effective. The uniform decrease in price elasticities suggests that consumers pay less attention to subsidies when information is provided. We structurally estimate that welfare-maximizing subsidies are up to 150% larger than the Pigouvian benchmark when combined with information.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 16141
- Klassifikation
-
Wirtschaft
Allocative Efficiency; Cost-Benefit Analysis
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Taxation and Subsidies: Efficiency; Optimal Taxation
Energy: Demand and Supply; Prices
Energy: Government Policy
- Thema
-
information
nudges
optimal taxation
internality taxes
field experiments
energy efficiency
behavioral public economics
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rodemeier, Matthias
Löschel, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2023
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rodemeier, Matthias
- Löschel, Andreas
- Institute of Labor Economics (IZA)
Entstanden
- 2023
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