How labels help nudge consumers into better choices
It was noticed that consumers may want to buy energy efficient appliances and energy saving appliances, but do not actually want to invest in them in the short term due to cognitive dissonance and time-inconsistent preferences. However, presenting information of a total monetary lifetime running costs along with EU energy label has had a significant effect on the average energy consumed by the appliances. This could result in a net gain of 1.7 million £ for a society if this intervention is extended throughout the UK.
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