Pleshcheva, Vlada (HU Berlin)
Klapper, Daniel (HU Berlin)
Dannewald, Till (Wiesbaden Business School)
In this paper, we first recover the individual valuation of expected future fuel costs at the time of a car purchase and then explore how various factors relate to the recovered consumer undervaluation of fuel savings (on average, consumers’ willingness-to-pay for a €1 reduction in fuel costs is below €0.20).
energy-efficiency paradox; hedonic discrete choice model; vehicle purchase; willingness-to-pay
D12; D90; M31; Q51
On Factors of Consumer Heterogeneity in (Mis)Valuation of Future Energy Costs: Evidence for the German Automobile Market