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A large-scale test of the effects of time discounting, risk aversion, loss aversion, and present bias on household adoption of energy-efficient technologies

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A large-scale test of the effects of time discounting, risk aversion, loss aversion, and present bias on household adoption of energy-efficient technologies. / Schleich, Joachim; Gassmann, Xavier ; Meissner, Thomas; Faure, Corinne .

In: Energy Economics, Vol. 80, 05.2019, p. 377-393.

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@article{a60d33b8c7dd47f7a25b93acf6b399c2,
title = "A large-scale test of the effects of time discounting, risk aversion, loss aversion, and present bias on household adoption of energy-efficient technologies",
abstract = "This paper empirically and jointly analyses the relations between standard time discounting, risk aversion, loss aversion, and present bias and household stated adoption of low to high stake energy efficiency technologies (EETs): light emitting diodes (LEDs), energy-efficient appliances, and retrofit measures. The analysis relies on a large representative sample drawn from eight European Union countries. Preferences over time, risk, and losses were elicited and jointly estimated from participant choices in incentivized, context-free multiple price list experiments. The findings from econometrically estimating EET adoption equations provide some support for the hypothesis that individuals who are more loss-averse, or more risk-averse, or who exhibit a lower time discount factor are less likely to have adopted EETs. Yet, some of the results (significance levels and effect sizes) appeared sensitive to the addition of covariates, which may be an indication of bad controls. Finally, omitting one or several of the parameters capturing preferences over time, risk, and losses when estimating the EET adoption equations, did not appear to cause omitted variable bias.",
keywords = "Time discounting, Risk aversion, Loss aversion present bias, Energy efficiency, Adoption, PREFERENCES, ATTITUDES, CHOICE, BEHAVIOR, POWER, BACK",
author = "Joachim Schleich and Xavier Gassmann and Thomas Meissner and Corinne Faure",
note = "data source: data from own survey",
year = "2019",
month = "5",
doi = "10.1016/j.eneco.2018.12.018",
language = "English",
volume = "80",
pages = "377--393",
journal = "Energy Economics",
issn = "0140-9883",
publisher = "Elsevier Science",

}

RIS

TY - JOUR

T1 - A large-scale test of the effects of time discounting, risk aversion, loss aversion, and present bias on household adoption of energy-efficient technologies

AU - Schleich, Joachim

AU - Gassmann, Xavier

AU - Meissner, Thomas

AU - Faure, Corinne

N1 - data source: data from own survey

PY - 2019/5

Y1 - 2019/5

N2 - This paper empirically and jointly analyses the relations between standard time discounting, risk aversion, loss aversion, and present bias and household stated adoption of low to high stake energy efficiency technologies (EETs): light emitting diodes (LEDs), energy-efficient appliances, and retrofit measures. The analysis relies on a large representative sample drawn from eight European Union countries. Preferences over time, risk, and losses were elicited and jointly estimated from participant choices in incentivized, context-free multiple price list experiments. The findings from econometrically estimating EET adoption equations provide some support for the hypothesis that individuals who are more loss-averse, or more risk-averse, or who exhibit a lower time discount factor are less likely to have adopted EETs. Yet, some of the results (significance levels and effect sizes) appeared sensitive to the addition of covariates, which may be an indication of bad controls. Finally, omitting one or several of the parameters capturing preferences over time, risk, and losses when estimating the EET adoption equations, did not appear to cause omitted variable bias.

AB - This paper empirically and jointly analyses the relations between standard time discounting, risk aversion, loss aversion, and present bias and household stated adoption of low to high stake energy efficiency technologies (EETs): light emitting diodes (LEDs), energy-efficient appliances, and retrofit measures. The analysis relies on a large representative sample drawn from eight European Union countries. Preferences over time, risk, and losses were elicited and jointly estimated from participant choices in incentivized, context-free multiple price list experiments. The findings from econometrically estimating EET adoption equations provide some support for the hypothesis that individuals who are more loss-averse, or more risk-averse, or who exhibit a lower time discount factor are less likely to have adopted EETs. Yet, some of the results (significance levels and effect sizes) appeared sensitive to the addition of covariates, which may be an indication of bad controls. Finally, omitting one or several of the parameters capturing preferences over time, risk, and losses when estimating the EET adoption equations, did not appear to cause omitted variable bias.

KW - Time discounting

KW - Risk aversion

KW - Loss aversion present bias

KW - Energy efficiency

KW - Adoption

KW - PREFERENCES

KW - ATTITUDES

KW - CHOICE

KW - BEHAVIOR

KW - POWER

KW - BACK

U2 - 10.1016/j.eneco.2018.12.018

DO - 10.1016/j.eneco.2018.12.018

M3 - Article

VL - 80

SP - 377

EP - 393

JO - Energy Economics

T2 - Energy Economics

JF - Energy Economics

SN - 0140-9883

ER -