Shedding Light on the Light Bulb Puzzle: The Role of Attitudes and Perceptions in the Adoption of Energy Efficient Light Bulbs

Despite the potential energy savings and economic benefits associated with compact fluorescent light bulbs (CFL’s), their adoption by the residential sector has been limited to date. In this paper, we present a theoretical model that focuses on the agents’ ability to perceive the correct cost of lighting and on the role of environmental attitudes as key determinants of the adoption decision. We use original data from Ireland to test our theoretical predictions. Our results emphasize the importance of education, information and environmental awareness in the adoption decision.

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