The EnergyGuide Label: Evaluation and Recommendations for an Improved Design

Jennifer Thorne, American Council for an Energy-Efficient Economy
Christine Egan, Collaborative Labeling and Appliance Standards Program

Keywords

Abstract

Since 1980, major home appliances and heating and cooling equipment have been required to display the EnergyGuide label. The label is intended to help consumers make cost-effective appliance purchasing decisions by providing comparative information about product energy use. An effective EnergyGuide has the potential to promote energy-efficient appliance purchases, thereby reducing overall energy consumption and saving consumers money.

Findings of a comprehensive, two-year evaluation of the EnergyGuide demonstrate that the current label design is confusing to consumers and has little, if any, role in appliance purchasing decisions. Testing of alternative label designs identified several label designs preferred by consumers. In particular, a categorical, stars-based label out-performs the current label. It grabs consumer attention, is easily understood, and correctly communicates appliance energy consumption. It is credible and motivates consumers to read the label and consider energy use when purchasing an appliance. Our findings are based on multi-method primary research, including a consumer intercept survey; consumer focus groups; a simulated shopping experiment; and semi-structured interviews with consumers, retailers, manufacturers, and contractors. This research, along with international experience, demonstrates that categorical labels better meet consumer needs and the objectives of the EnergyGuide labeling program. In 2002, the research sponsors will petition the Federal Trade Commission (FTC) to adopt an improved EnergyGuide design based on findings.

This paper builds on earlier work (Egan, Payne, and Thorne 2000) by presenting overall and summary findings (whereas earlier work provided only interim results) and going into detail about individual research tasks previously not reported.