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Open AccessArticle

Willingness to Pay for Energy Efficient Appliances: The Case of Lebanese Consumers

by Hassan Harajli 1,2 and Ali Chalak 3,*
1
EU-UNDP CEDRO Project, Beirut 2011 5211, Lebanon
2
Department of Economics, American University of Beirut, Beirut 1107 2020, Lebanon
3
Department of Agriculture, American University of Beirut, Beirut 1107 2020, Lebanon
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(20), 5572; https://doi.org/10.3390/su11205572
Received: 10 July 2019 / Revised: 13 September 2019 / Accepted: 17 September 2019 / Published: 10 October 2019
(This article belongs to the Special Issue The Transition to Energy Efficient Buildings)
A contingent valuation study was conducted to elicit the willingness to pay (WTP) of Lebanese citizens for five types of energy-efficient home appliances: washing machines, air conditioners, televisions, light bulbs, and refrigerators. A face-to-face survey is designed to this end, with data collection achieving a sample of 605 households geographically representative of the Lebanese population. A multivariate Tobit model was used to gauge the effects of socio-demographic characteristics, attitudes, perceptions, behavior, and experience on the WTP across all these appliances, while accounting for potential correlations between these WTP values. Findings provide evidence of the importance of several socio–demographics in determining WTP for more energy efficient appliances, such as income, education, and age, and the importance of perceptions and experience covariates, not least the implementation of energy labelling and the cost of electricity. In terms of policy implications, this study highlights the need to legally enforce a shift in payment mode from renting per capacity (kW) to purchasing per power (kWh) consumed for electricity in the back-up power sector, and the immediate introduction of a local labelling scheme for home appliances. View Full-Text
Keywords: Energy efficiency; household appliances; multivariate Tobit; purchasing decisions; willingness to pay Energy efficiency; household appliances; multivariate Tobit; purchasing decisions; willingness to pay
MDPI and ACS Style

Harajli, H.; Chalak, A. Willingness to Pay for Energy Efficient Appliances: The Case of Lebanese Consumers. Sustainability 2019, 11, 5572.

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