A randomized trial of energy cost information provision alongside energy-efficiency classes for refrigerator purchases

Energy-efficiency classes provide coarse but easy-to-process information designed to help complex decisions. However, they are multi-attribute indices, imprecisely related to the running costs of graded products. Here we evaluate the impact of adding simple but accurate yearly or lifetime energy cost information to the European Union energy label. We conduct a field experiment with an online retailer of energy-using durables, measuring customers' (n = 126,614) search and purchases of refrigerators. Providing precise energy costs leads to purchasing products with lower prices and in lower energy-efficiency classes, but with similar overall energy and total costs. Furthermore, information provision lengthens product search among buyers, with more attention paid to low energy class products. These results highlight that the use of energy classes involves a trade-off between short-term economic savings and higher search cost. By drawing attention away from energy costs, energy-efficiency classes might not be adequate in the context of a fair and transparent climate transition.