Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177847 
Year of Publication: 
2018
Series/Report no.: 
Working Paper Sustainability and Innovation No. S04/2018
Publisher: 
Fraunhofer-Institut für System- und Innovationsforschung ISI, Karlsruhe
Abstract: 
This paper empirically and jointly analyses the relations between risk aversion, standard time discounting, present bias, and loss aversion and household stated adoption of low to high stake energy efficiency technologies (EETs) (light emitting diodes (LEDs), energy efficient appliances, and retrofit measures). The analysis relies on a large representative sample drawn from eight European Union countries. Preferences over time, risk and losses were elicited and jointly estimated from participant choices in incentivized, context-free multiple price list experiments. The findings from econometrically estimating EET adoption equations suggest that present-biased individuals are less likely to adopt EETs. They also provide (weak) evidence that individuals which are more risk-averse, or more loss-averse, or which exhibit a lower discount factor are less likely to adopt EETs. Finally, omitting one or several of the time and risk or loss-aversion parameters when estimating the EET adoption equations did not appear to cause omitted variable bias.
Subjects: 
risk aversion
time discounting
present bias
loss aversion
energy efficiency
adoption
JEL: 
D23
D81
Q41
Q48
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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