Consumer Willingness to Pay for Energy Efficient Refrigerators in Nairobi City County, Kenya

Abstract

In Kenya, consumer choices regarding home energy appliances, such as refrigerators, are crucial for enhancing energy efficiency and environmental conservation efforts. This study examined the influence of the Kenya Energy Star Rating Label on consumer preferences for refrigerators. Using stratified random sampling, 330 respondents from five constituencies in Nairobi County, Kenya, were surveyed. The research employed a combination of conditional and mixed logit models to analyse the data. The results revealed a significant positive correlation (P = .05) between the Kenyan Energy Star Rating label and consumer preference for energy-efficient refrigerators across all models. Consumers demonstrated a willingness to pay an average premium of 28,708.5 Kenyan shillings for refrigerators displaying the Kenyan Energy Star Rating label, indicating their recognition of the label's value. There was no significant relationship between consumer environmental concern and their willingness to pay for energy labelled refrigerators. These findings have notable policy implications, emphasizing the importance of educating Kenyan consumers about the environmental advantages of energy-efficient appliances. Specifically, the results underscore the effectiveness of the Kenyan Energy Star Rating Label in guiding consumer choices toward more sustainable appliance options.