Investigating urban household's willingness to pay for investing in energy efficient equipment: the role of perceived value and energy efficiency label

The consumption of energy has led to severe global challenges in terms of climate change and environmental issues. Household appliances are widely used products that consume significant amounts of electricity. Therefore, among energy consumers, the household sector plays a crucial role in terms of energy consumption patterns and levels. This is because, with the improvement of household living standards and the necessity of using household appliances, the demand for electrical energy is increasing, and there will always be a risk of energy waste in this sector. Extensive use of energy-efficient appliances contributes to energy conservation, resource efficiency, and the development of a low-carbon economy. Therefore, in these circumstances, providing appropriate solutions to reduce energy consumption and household expenses is essential. The utilization of energy-efficient technologies in the household sector is of particular importance. In this research, based on a comprehensive model grounded in planned behavior theory and perceived value literature, the determination of the factors influencing the acceptance of energy-efficient washing machines and refrigerators in the household sector, as well as calculating the willingness to pay by urban households for investing in these technologies, have been addressed. In this regard, a survey method was employed using a contingent valuation approach. The research data was collected through questionnaire completion (with a sample size of 400 individuals) and face-to-face interviews with households residing in District 4 of Tehran in 2020. The study results indicate that for every 1% increase in the proposed price, the likelihood of willingness to pay extra for purchasing an energy-efficient washing machine and refrigerator decreases by 2.79% and 1.81%, respectively. Furthermore, the results reveal that the proposed price, age, income, and household expenses have the most significant impact on the probability of households' willingness to pay extra. Additionally, the maximum willingness to pay by households for using an energy-efficient washing machine at the highest energy level A+++ (60% energy savings) is 24.9 million rials, and for an A++ refrigerator (28% energy savings), it is 49.9 million rials. Therefore, based on the results, the provision of government incentives and facilitation of purchasing through financial assistance can encourage consumers to invest in energy-efficient equipment. Media planning can also play a significant role in creating awareness and promoting the use of energy-efficient technologies. Furthermore, organizing educational workshops in neighborhood centers to disseminate information about the benefits of energy-efficient equipment is another proposed solution.