Individual Barriers to Energy-Efficient Appliance Purchases: A Review

Introduction

Energy use dominates a major aspect of modern life, it however comes with environmental problems (Gaspar, Antunes, Faria, & Meiszner, 2017). The energy consumed by individuals at their homes accounts for a significant share of total energy consumption and CO₂ emissions (BPIE 2011, Gardner and Stern 2002). Households use energy for varied reasons and different household activities vary widely on the amount of energy used (Steg, 2008). Household sector plays a major role in energy consumption(Barr, Gilg, & Ford, 2005) and a lot of effort has been focused on saving energy in households as they account for one-fifth of the global energy demand (Smith et al., 2013). An important aspect while considering energy consumption is that people do not consume electricity directly, but they do utilize the services powered by electricity like TV, Lighting, Fridge etc. In other words, electricity consumption must be studied in terms of energy usage

In terms of reducing the household energy consumption, there are two options of curtailment or switching to energy efficient appliances. Research has proved that moving towards energy efficiency can be considered an option to mitigate the climate change and conserve environment (Häckel, Pfosser, & Tränkler, 2017). However energy users prefer curtailing energy usage compared to retrofitting or switching to energy efficient appliances (Di Maria, Ferreira, & Lazarova, 2010). Switching to energy efficient appliances is not yet considered as a feasible option(Mills & Schleich, 2010).

Despite the future cost saving from investing in energy efficient appliances, the consumers continue to invest in non-energy efficient appliances or is yet reluctant to retrofit the old appliances(Jakob, 2007). This phenomenon is termed as energy efficiency gap or energy paradox. This gap is the discrepancy between the availability of energy efficient appliances or technologically efficient appliances which are economically optimal but from which consumers refrain(Schubert & Stadelmann, 2015) and opt for conventional appliances which incur high lifetime costs. The precise definition of this phenomenon is that, although energy efficient investments “seem to present clear economic and environmental advantages, the level of investment in them does not reach the levels which would correspond to such benefits” (Linares and Labandeira 2010, 576).

Energy efficiency can be thought of as cost effective approach for addressing energy challenges and reducing the impact of climate change (Nauclér & Enkvist, 2009).In simpler terms it refers to using less energy to get the same work done. Therefore energy efficiency for an appliance means all other conditions remaining constant, avoiding the need of excess energy supply coupled with lower greenhouse gas emissions and avoidance of fossil fuel extractions (Shwom, 2011). This definition closely relates to that of environmentally friendly products (EFPs) or pro-environmental products which cause minimum harm to the environment (Ottoman, 1998). As energy efficient appliances reduce emissions and avoid further fossil fuel extraction they can be termed as environmentally friendly products. Higher energy efficiency will reduce import dependency and increase security of supply (Schleich, 2007).

The presence of the energy efficiency gap is studied from various perspectives since 1990s.The gap could be due to multiple barriers encountered by the consumers while adopting energy efficient appliances. Understanding the barriers that deter a person from not purchasing energy efficient appliances is not easy. The existing studies on understanding barriers offer limited value as they provide inputs on consumer’s short sightedness and time discounting(Bhattacharya & Cropper, 2010).

This review papers provides an overview of the studies undertaken between 2008-2018 on identifying the potential factors that hold back consumers from purchasing energy efficient household appliances. This decade was chosen as most of the emerging economies initiated the appliance labelling schemes since 2005-2006¹. Studies on assessing the impact of these labels on consumer’s preference were documented thereafter and hence the choice of studies from BRICS nations between 2008-2018.