Reframing greenhouse gas emissions information presentation on the Environmental Protection Agency’s new-vehicle labels to increase willingness to pay
2021
Daziano, R. | Waygood, E.O.D. | Patterson, Z. | Feinberg, M. | Wang, B.
This study will investigate how information on greenhouse gas emissions (GHG-E) is presented can significantly influence the response strength when choosing a new vehicle. Five different labels, based on the Environmental Protection Agency’s (EPA) vehicle labels, are designed and tested in a discrete choice experiment considering the combining effects of society goal and individual impacts such as a carbon tax. Using a sample of 2400 car-owning American residents, the EPA’s current framing was tested against these five different framings. To estimate the strength of response, the willingness-to-pay (WTP) was estimated by generating three models, i.e. a conditional logit model, a latent-class logit model with constant assignment, and a latent-class logit model considering socio-demographic and climate change stage of change (CC.SoC) effects. Measurable differences can be observed with respect to the framing type. The most effective framing (WTP of roughly $280/ton) was found to be where the GHG-E are presented with respect to a societal goal, with the financial impact of having a carbon tax included in the fuel costs. The findings of this research provide an improved solution to increase people’s environmental sensitivity and gives policy suggestions to address the problem of climate change.
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