When shopping for appliances, people can find it difficult to weigh up the advertised cost of an appliance against its long-term running costs. This is sometimes referred to as the ‘energy‑efficiency gap’. BETA joined forces with the Department of the Environment and Energy and Appliances Online to see if consumers could be encouraged to buy more energy‑efficient appliances—helping them to save money.

Drawing on behavioural insights, an alternative energy label was designed. A trial was runl to test whether it – or the existing Australian Energy Rating Label – helped people to choose more energy‑efficient appliances online.

The research found energy labels have positive effects on consumer behaviour compared to no labels. These effects are large enough to warrant consideration by policy makers interested in the twin policy goals of reducing carbon emissions and household energy costs. No difference was found between the impact of the existing label and the alternative label.

The report is accompanied by a one-page summary and supplementary analysis.