The Role of Ethnicity and Education in Energy Efficient Technology Adoption

Abstract

The Energy Star program is a voluntary labeling scheme used to promote the purchase of energy efficient products. In this paper, I studied U.S. consumer choices to purchase Energy Star refrigerators. I predicted that different levels of education, Hispanic ethnicity, and the interaction between education and Hispanic ethnicity would have significant effects on energy efficient technology purchases. To research this relationship, I conducted a probit regression model controlling for income, age and regional energy efficiency awareness. Post estimation for hypothetical households showed that Hispanic ethnicity predicted a lower propensity for Energy Star refrigerator purchase for consumers that had replaced their refrigerator in the last 5 years and had completed some schooling up to the high school level. These results have implications for the design and implementation of U.S. energy efficiency labeling programs.