Preference of consumers for higher-grade energy-saving appliances in hierarchical Chinese cities

Abstract

Promotion of energy-saving household appliances (ESHAs) potentially contributes to optimizing both the total quantity and efficiency of household energy consumption. Differences in urban consumers' preference for higher-grade ESHAs as well as its influencing factors in cities with hierarchical socioeconomic levels remain elusive. Targeting 55 Chinese cities pertaining to three levels of socioeconomic development, we distribute questionnaires designed to cover both demographic and consciousness factors. By combining Contingent Valuation Method and multiple linear regression, the extra willingness to pay (WTP) for Grade-1/2 appliances compared with Grade-3 appliances is measured, and the influence factors on the WTP as well as consumers with highest WTP are identified. The extra WTP for Grade-1 appliances in First-, Second- and Third-level cities is 44.1%, 42.3% and 32.7%, respectively. The influences of age, household income, having children or not and monthly electricity bill parallel the socioeconomic level, while gender and schooling affect differently across socioeconomic levels. Consumers in less developed cities focus more on their affordability for the ESHAs, and in more developed cities have better environmental consciousness. Subsidies for consumers, such as those having master degree or above in First-level and Second-level cities, and having children in Third-level cities will increase their WTP. The findings provide insights for policy interventions aimed at boosting the purchase behavior for ESHAs according to local conditions for control of both household energy consumption and carbon emissions.

Keywords: Chinese cities; Consciousness; Consumers; Demographic factors; Energy-saving household appliances (ESHAs); Willingness to pay (WTP).