Assessing the EU Energy Efficiency Label for Appliances: Issues, Potential Improvements and Challenges

Abstract

The EU Energy Efficiency (EE) label for appliances, readjusted in March 2021 (Directive 2017/1369/EU), is a key instrument for nudging consumers towards more energy-efficient purchases. However, its effectiveness depends on its design, the information provided and consumers’ understanding of and trust in it. This paper seeks to contribute to the assessment of the EE label for appliances and to identify issues, potential improvements and challenges for successfully nudging consumers towards highly energy-efficient choices. To that end, 33 in-depth interviews have been conducted with three different groups (citizens, appliance retailers and experts in energy) to ascertain the opinions and experiences of different agents as to consumers’ preferences and opinions on EE and energy consumption. We focus on purchasing decision-making by Spanish consumers for the three main appliances: washing machines, fridges and dishwashers. The EE label for appliances seems to be well-known and reliable for consumers. The main weakness lies in people’s understanding of its content rather than in its design. The coloured alphabetical EE scale seems to be well understood and the restored A–G scale of the readjusted label positively valued. However, we find comprehension issues with regard to the information on energy consumption and the technical data at the bottom of the label. Monetary information on energy consumption seems to facilitate consumers’ understanding, but it is technically challenging due to the complexity of the unit of measurement. Results are discussed, taking into account the relevant literature.